A business owner must do everything possible to find the right talent. No company wants to find themselves limited by location. You don’t want to miss out on finding the right employee. Many American companies have avoided hiring Canadians in the past due to payroll and tax issues. Professional employer organizations have enabled companies to hire outside of the United States with ease. In this post, you will learn about five challenges American companies face when hiring Canadian employees.
- Insurance Costs
One challenge a business owner faces is finding the right insurance plan for employees. Companies who are unable to find the best insurance plan may not have an attractive employee benefits packages to offer. A business without the right benefits may never land their dream candidates. One benefit of professional employment organizations (PEO) is that they can find special insurance plans, often at a lower rate. Finding lower insurance plans helps a business to offer employees great insurance plans with low payments.
- Handling Payroll
A professional employer organization can easily take care of payroll for a company. One of the drawbacks of hiring a Canadian employee is taking on a new payroll system. It’s likely you’ve grown accustomed to how your employees are paid. Finding the perfect Canadian employee doesn’t have to mean learning a new method of calculating payroll. Many companies are finding the benefits of outsourcing to payroll service solutions companies too good to pass up. Business owners taking on payroll on their own means having to calculate hours and perform complex calculations for each worker.
- Not Having to Learn Canadian Tax Rules
One area where no company wants to have problems with are business taxes. Professional employment organizations (PEO) are able to help a business prepare taxes for Canadian employees. Canadian authorities are beginning to enforce harsher payroll policies for small businesses. You don’t to find your company in trouble because of a simple tax mistake. It makes sense to look at professional employment organizations (PEO) to help you avoid learning additional tax rules. Working with a professional employment organization leaves you with less time doing taxes and more time to run your business.
- Compliance with Rules of Both Countries
It’s difficult to ensure your business is following both Canadian and American rules. Working with a professional employment organization ensures your business follows all necessary rules. Canada is a country that comes with additional organizations with their own set of rules to follow. You don’t want to spend the vast majority of your weeks having to ensure compliance with new rules. Working with a PEO gives you more time to welcome your Canadian hire onboard.
- Taking Care of Human Resource Issues
There are times when employees will have matters that need to be solved. A business owner may find it expensive to hire an entire HR department. You will have to deal with hiring costs, benefits, and other employee deductions from the revenue of a business. Many business owners use a professional employment organization to take care of any and all human resource issues that arise. A payroll processing company is able to provide continuous human resource support, especially when dealing with sensitive workplace issues.
In closing, hiring Canadian employees is much easier for an American company with a PEO. Professional employment organizations (PEO) handles many daily functions of a business. It’s extremely tough for a business owner to take care of paying taxes and handling payroll. Throwing in a Canadian employee used to mean that American business owners needed to learn many new tax and payroll calculations. A professional employment organization helps a company handle complex human resource issues. The area of human resources is definitely something you don’t want to be handled by anyone other than a trained professional. It’s no wonder so many businesses are working with professional employment organizations.