Expanding Your Business to Canada
June 12, 2024
Expanding your company’s hiring pool to a worldwide scale has never been easier in today’s remote work environment. With the increasing prevalence of virtual work, the opportunity to hire remote workers from anywhere in the world presents a competitive advantage. However, navigating the legal and regulatory complexities of hiring employees in foreign countries can be challenging.
Many American companies are familiar with Professional Employer Organizations (PEO). This is a co-employment model based in the USA and supported in the law. However, this model is insufficient for foreign situations.
An Employer of Record (EOR) allows American companies to hire in a foreign country.
What is the difference between a PEO and an EOR?
| PEO | EOR | |
| Geography | USA has a legal framework for co-employment. | Everywhere. |
| Legal structure | Co-employment. Shared responsibility. | Direct employer. |
| Cost | Cheaper but many costs are kept in-house. | Full-service outsourcing. More expensive fees but fewer in-house costs. |
| Compliance | Local entity required. | No entity required. Simple vendor relationship. |
| Taxes | It depends. | Completely handled by the EOR. |
At JobArc, we specialize in facilitating the expansion of remote talent pools and the hiring of Canadians for remote positions. By utilizing our services, companies can simplify the entire process and benefit from streamlined operations, all with the convenience of a single monthly bill. Contact us!
