As companies expand their international teams, compliance with local legislation, such as payroll regulations, becomes crucial. Via, an employer of record, offers a solution for companies looking to hire employees from other countries while remaining compliant. In this article, we’ll explore how Via can assist with payroll in Canada for companies hiring Canadian employees.
Expanding a business globally is a strategic step to take for its growth. Hiring international talent is a great way to explore new foreign markets. A global Employment of Record (EoR) can assist you. This guide provides the following:
- Insights into the function of an employer of record.
- The effective use of an EoR.
- The advantages of collaborating with a global EoR to achieve your global expansion targets.
Definition of an Employment of Record
An Employment of Record (EoR) is a third-party organization that assumes all employer-related responsibilities and duties for a company’s workforce, becoming their full legal employer. The EoR manages human resources responsibilities, such as onboarding, paying, and managing supported employees. At the same time, the company retains control over day-to-day operations.
Global Employment of Record Explained
A global Employment of Record enables companies to legally engage with employees internationally without setting up a local entity or violating employment laws. The global EoR is an international teams of HR knowledgeable about labor laws and payroll regulations in different markets.
Employer of Record’s Responsibilities
An Employment of Record allows companies to engage talent globally, legally and efficiently. The global EoR ensures compliance with employment, immigration, payroll, and benefits regulations for the distributed workforce. At the same time, the company retains control over workforce management.
Services Offered by a Global EoR
A global EoR provides services such as locally compliant employment contracts, payroll and tax management, timely payments, comprehensive benefits, termination and offboarding compliance, and ongoing support on local labor regulations.
Benefits of Working with an EoR
Partnering with a global EoR offers many benefits, such as compliant hiring in international markets, quick onboarding, cost savings compared to entity setup, offering comprehensive benefits packages, maintaining compliance with employment contracts and labor laws, and receiving ongoing HR support.
Employment of Record Usage
An Employment of Record (EoR) can be a valuable partner for companies seeking to manage a distributed workforce and navigate global markets. By utilizing a global EoR, businesses can:
Explore New Markets
Suppose you’re interested in expanding into a new market but have yet to be ready to establish an entity. In that case, an EoR allows you to test out the market and hire a team quickly without committing to entity establishment. This way, you can generate new revenue streams and reach new customers in new global markets while remaining compliant.
Retain And Attract Top Talent
In today’s labor market, the ability to work remotely is highly sought-after, making it challenging for companies to attract and retain top talent. However, hiring without geographic limitations opens up the talent pool. It allows you to find workers with the same skills you need. With a global EoR, companies can hire from anywhere and attract top-tier talent. Additionally, when employees want to be relocated, a global EoR can help retain them without the need for entity establishment.
Hire Employees During Entity Establishment
Entity establishment is a complex process requiring extensive knowledge and resources to navigate local laws. However, an EoR can serve as an intermediary solution by providing hiring support and advice on entity establishment while you finalize the requirements.
Avoid Misclassification of Contractors
Hiring contractors can be cheaper for companies looking to hire remote, international teams. However, it also comes with a substantial risk of misclassifying contractors as employees. A global EoR offers an efficient way to hire contractors as employees, reducing compliance risks.
Conclusion
In conclusion, Via is a valuable partner for businesses looking to expand their international teams without the burden of navigating complex hiring and compliance laws. As an employer of record, Via provides the necessary technology and expertise to ensure a seamless and compliant hiring process, regardless of the employees’ location. With Via’s support, companies can confidently focus on growing their business and generating new revenue streams while ensuring the employment of record requirements is met in both the local and originating countries.
