employer of record

Submitted by OnPayroll.ca Canada on Fri, 2016-02-12 14:16

For employees outside of Québec, employer contributions to a private health services plan (such as medical or dental plans) for employees, is not a taxable benefit to the employees. There are no statutory deductions such as Canada Pension Plan contributions, Employment Insurance premiums, or income tax that will apply. Employer paid premiums under a private health services plan are not taxable and won't be reported on the employee's T4 slip.

For employees in Québec, the contributions an employer pays under one of the following group insurance plans for the coverage that a current, past or future employee receives during the year constitute a taxable benefit for the employee:

  • a private health services plan
  • a group life insurance plan (term or other)
  • all other group insurance plans, except plans covering total or partial loss of income from an office or employment.

Québec and Federal statutory deductions apply.  These taxable benefits will reported on the employee's RL1. For clients of OnPayroll.ca Canada we look after the proper set up and administration of the benefit premiums and taxability as legislated.  That is just one of the ways that we strive to maintain compliance for you, us and the employee.

Submitted by OnPayroll.ca Canada on Thu, 2013-08-01 14:14

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.