Remote work opens up endless possibilities for hiring sought-after talent across the globe. Today, many employers are looking to Canada to find it. In fact, according to a 2018 report by the Organization for Economic Cooperation and Development (OECD), Canada is one of the most educated countries in the world, which means that there is a vast roster of highly skilled and educated professionals across its 13 provinces and territories.
Alberta is an attractive province for employers looking to build out their Canadian-based teams. Over half of Alberta’s workforce between the ages of 25 and 64 has a higher education — 28.2% hold a bachelor’s degree or higher and 22.0% hold a college, CEGEP or other non-university certificate or diploma, according to the 2016 Census Report.
Setting out to hire a distributed workforce, whether you’re looking in Canada or elsewhere, can be a daunting task. But an Employer of Record (EOR) can significantly simplify the process. And to make it even easier, we’ve broken down everything you need to know about hiring top-tier Alberta talent through an EOR.
What Is an Employer of Record?
EORs are third-party organizations that manage the legal responsibilities of hiring new employees. EORs handle:
- Visas and work permits
- Employment contracts
- Payroll
- Local legal compliance
- Termination
- Other HR services
Through an EOR, you can compliantly employ and pay hires in Canada without having to set up new offices in the country. The EOR will be your staff’s legal employer, but your employees abroad will still report to your company as your local staff do.
You will continue to assign all work and tasks. You will also make any decisions regarding employment as it relates to salary, time off, termination, etc. Put simply, an EOR is not involved in your team’s day-to-day work.
When you choose an EOR to hire talent in Alberta you are:
- Saving time on administrative work so you can focus on your company’s core activities.
- Mitigating risks by shifting the burden of official documentation, taxation, payroll, and paperwork to a trusted third-party vendor.
- Reducing costs associated with launching into new global markets, managing local legalities, and setting up an office.
How an EOR can Help You Hire Alberta Talent
Your EOR will handle all the logistics involved with hiring an Alberta-based employee. It will ensure that you are properly onboarding new talent and remaining compliant with things like province-wide vacation policies, working hours, and other legalities as per Alberta’s Employment Standards.
Contracts and Documentation
An EOR will handle the tedious administration involved in preparing and collecting contracts and documentation – including employment offers, signed contracts, banking information and more so you can focus on growing your business.
Employee Insurance and Benefits
When the world is your competition, it pays to incentivize new and existing hires with attractive benefits like medical, dental, vision and life insurance and retirement savings plans. A comprehensive EOR will have those kinds of benefits built into its service offering.
Vacation and Public Holidays
The standard paid vacation allowance for employees in Alberta is two weeks with pay after one year and three weeks with pay after five consecutive years.
Alberta also has nine public holidays. An employee is entitled to general holiday pay if they have worked for the same employer for at least 30 workdays in the 12 months prior to the holiday. Most employees are entitled to general holidays and receive holiday pay if one of the following applies to them: a general holiday is a regular day of work or they have worked on a general holiday that is not a regular day of work. These public holidays include:
- New Year’s Day: January 1
- Family Day: February 20
- Good Friday: First Friday in April
- Victoria Day: Monday preceding May 25
- Canada Day: July 1
- Labour Day: First Monday in September
- Thanksgiving Day: Second Monday in October
- Remembrance Day: November 11
- Christmas Day: December 25
With optional general holidays including:
- Easter Monday: April 10
- Heritage Day: August 7
- National Day for Truth and Reconciliation: September 30
- Boxing Day: December 26
Taxes
As an employer or payer in Canada, you are responsible for deducting the following four amounts:
- Canada Pension Plan contribution
- Employment Insurance premium
- Federal income tax
- Provincial income tax
This can be a tedious process but is necessary to ensure you are paying employees in a compliant manner. Thankfully, an EOR can handle the logistics and ensure payroll is processed properly and per the regulations in whichever Canadian province.
Now that you understand what an EOR is and how it can benefit you, you might be wondering how to select the right one for your business. During your selection process, consider these five things.
- Local Experience: Ensure that you are selecting a vendor that has experience on the Canadian market, particularly in Alberta, as they will understand the nuances of that particular region.
- Scalability and Technology: Be sure to select a vendor that has a leading range of services with capabilities to scale up in response to your company’s specific hiring needs.
- Services and Benefits: It’s ideal to select a vendor that can provide a broad range of benefits like employee insurance, training and onboarding, financial advisory services, and more. For example, Borderless provides benefits directly through its platform and tailors packages to your needs..
- Data and Systems Security: Protecting intellectual property in a remote work environment is critical. Ensure your vendor of choice has a specific agreement outlining the ways in which they plan to keep your sensitive information safe and secure.
- Collaboration: Communication will be key for smooth processes. Prefer having an assigned point of contact? Or do you simply need access to a Slack channel to quickly reach your vendor? Whatever your communication style, ensure your vendor can meet your needs.
Borderless: The Employer of Record your Company Needs
Need an EOR? Look no further than Borderless. We can help you hire employees in Alberta, Canada – giving you access to a massive talent pool without the headaches of traditional global expansion.
Book a demo today and see how we can help you quickly and easily hire, onboard, pay, and retain the Alberta-based talent your organization needs.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.