What is a PEO?
The concept of a Professional Employer Organization (PEO) in Canada is not well known, but is fairly common in the US and overseas. When the concept is new to someone, they may be able to relate to alternative terms of reference such as “Employer of Record”, “Professional Employment Services” or “Employee Leasing. That being said, we often receive calls from internationally based companies who want to set-up shop in Canada with one or two employees, typically sales people, programmers and service technicians. They are looking for an outsourced payroll service. For a simple payroll process, this means registering with the various government agencies and learning the relevant legislation and ensuring compliance on an ongoing basis. Some of the various government agencies may include the Canada Revenue Agency, Worker’s Compensation and maybe Revenu Québec if employing someone there.
Doing business in a foreign country can be, well, foreign. This is where a PEO comes into play. We share this concept with the caller and mention our PEO service through OnPayroll.ca Canada Corp. I’m surprised at their response and they are most appreciative of the fact that through our PEO, all of the needs that we can manage. We accomplish this by looking after all the HR related matters including hiring the people they want under our name, providing them with an employee handbook, looking after all payroll requirements, ensuring Workers Comp. compliance and enrolling the employee in our group benefits programs which included extended health, life insurance, long term disability and registered retirement savings plans. All these services we provide for one fixed fee. We do all the administration and compliance management and the client manages the employee as if he or she was their own.
Now you know, next time you hear of a PEO. Know that you can have employees in other locations through this service model. Not only will a good PEO provide you with tools to help you attract and retain talent but will allow you to focus on and grow your business. Learn more about our services and solutions.