Local employment contracts
Province-appropriate agreements covering compensation, hours, leave, notice and other mandatory terms.
Employer of Record Canada
Hire employees in Canada without setting up a local entity
Enter the Canadian market with one compliant hiring partner. TXM Solutions helps you onboard, pay and support employees while managing province-specific contracts, payroll deductions, benefits and ongoing HR administration.
No Canadian entity required
Province-aware compliance
Payroll in CAD
The short answer
What is an Employer of Record in Canada?
An Employer of Record (EOR) in Canada is the legal employer of
your worker on paper, while your company manages their daily
role and performance.
The EOR provides the locally compliant employment contract, runs
Canadian payroll, administers statutory deductions and benefits,
and supports HR compliance. This allows you to hire Canadian talent
without incorporating a Canadian company.
This model is well suited to businesses testing the Canadian market, hiring a small remote team, retaining an employee who relocates to Canada, or entering the country before a permanent entity is ready.
End-to-end employment support
What TXM Solutions can manage for your Canadian employees
Onboarding and documentation
Collection of employee details, tax forms, right-to-work information and payroll instructions.
Canadian payroll
Salary processing in CAD, payslips, taxable benefits, expense inputs and year-end payroll reporting.
Tax and statutory deductions
Administration of income-tax withholding, CPP or QPP, EI and applicable employer remittances.
Benefits administration
Statutory coverage plus market-aligned options such as supplemental health, dental and retirement benefits.
Leave and HR support
Support for vacation, public holidays, protected leave, policy questions, employee changes and compliant offboarding.
A clear route to market
How to hire an employee in Canada through TXM Solutions
Share the role
Tell us the province, role, salary, start date, work location and benefits expectations.
Review the cost
Receive an employment-cost estimate covering salary, employer charges, benefits and the EOR fee.
Contract and onboard
The employee reviews a locally aligned agreement and completes the required payroll documentation.
Pay and manage
TXM Solutions coordinates payroll and employment administration while you lead the employee’s day-to-day work.
Canada employment compliance
Federal rules are only part of the picture
Most Canadian employees are governed by the employment standards of the province or territory where they work. Federal labour standards apply mainly to federally regulated industries. That makes location a critical input before a contract, payroll or termination process is designed.
- Payroll: Employers generally calculate, withhold and remit income tax, pension contributions and Employment Insurance premiums.
- Employment standards: Minimum wage, overtime, vacation, statutory holidays and protected leaves vary by jurisdiction.
- Workers’ compensation: Registration and premiums may apply through the relevant provincial or territorial board.
- Quebec: QPP and QPIP requirements, provincial tax administration and French-language obligations need specific handling.
- Termination: Notice, pay in lieu and potential severance or common-law exposure require case-specific review.
Choose the right model
Employer of Record vs opening a Canadian entity
| Decision factor | Hire through an EOR | Set up your own entity |
|---|---|---|
| Canadian legal entity | Not required for the client company | Required |
| Best suited to | Fast entry, small teams, market testing or relocation | Long-term operation with a larger workforce |
| Employment contract | Provided through the EOR arrangement | Your company drafts and maintains it |
| Payroll account and remittances | Administered by the EOR | Your company registers and administers them |
| Local HR administration | Supported by the EOR | Built and managed internally or outsourced |
| Speed and setup | Usually faster, subject to checks and documents | Longer setup with registrations and banking |
| Cost pattern | Recurring fee per employee | Setup plus ongoing legal, payroll and administration costs |
| Scaling flexibility | Add employees by province as needs change | More fixed infrastructure |
Planning your budget
What does it cost to hire through an EOR in Canada?
Total employment cost is more than gross salary. Your estimate may include employer CPP or QPP contributions, EI premiums, workers’ compensation, provincial payroll levies where applicable, benefit premiums and the EOR service fee.
Because rates and thresholds can change and some costs vary by province, industry and salary, TXM Solutions prepares a role-specific quote instead of presenting a misleading one-size-fits-all figure.
Request a cost breakdown →National reach, local detail
Hire across Canada’s provinces and territories
The right employment setup depends on where the employee normally works. TXM Solutions can assess coverage and requirements for your target location.
Ontario
Payroll tax and ESA considerations
British Columbia
BC employment standards and WorkSafeBC
Alberta
Provincial standards and WCB
Quebec
French, QPP, QPIP and Revenu Québec
Manitoba
Provincial standards and WCB
Saskatchewan
Employment standards and WCB
Atlantic Canada
NB, NS, PEI and NL requirements
Northern Canada
YT, NT and NU requirements
Avoid costly mistakes
EOR or independent contractor?
Calling someone a contractor does not by itself make them self-employed. Canadian authorities may examine the real working relationship, including control, financial risk, tools and the ability to subcontract. Misclassification can create retroactive payroll, tax and employment liabilities.
If the person will work like a regular employee, an EOR arrangement can provide a cleaner employment route. TXM Solutions can help you identify which model needs further assessment.
Frequently asked questions
Canada EOR FAQs
Can a foreign or US company hire an employee in Canada?
Yes. A foreign company can establish its own Canadian employing entity or use an Employer of Record. With an EOR, the EOR is the legal employer and your company directs the employee’s day-to-day work.
Do I need a Canadian company to hire in Canada?
Not when you use a suitable EOR arrangement. The EOR employs the worker through its local infrastructure and administers the employment relationship, allowing your company to hire without first incorporating locally.
What payroll deductions apply in Canada?
Canadian payroll commonly includes income-tax withholding, Canada Pension Plan contributions and Employment Insurance premiums. Quebec uses QPP and also has QPIP. Employer costs and other levies depend on the province, salary and business circumstances.
How quickly can an employee start?
Timing depends on the province, screening, contract approval, payroll cut-offs, employee documentation and right-to-work status. TXM Solutions will confirm a realistic start date after reviewing the hire.
Can an EOR sponsor a Canadian work permit?
An EOR arrangement and immigration permission are separate. Some roles or candidates may qualify for employer-specific or open work permits, and some routes may require an LMIA. Immigration feasibility should be assessed before promising a start date.
Who manages the employee’s daily work?
Your company manages objectives, duties, schedule and performance. The EOR manages the legal-employer administration, such as the contract, payroll, statutory remittances, benefits and formal HR processes.
Does Canada have one employment law for every province?
No. Most employees fall under provincial or territorial employment standards. Federally regulated workplaces follow the Canada Labour Code. Requirements can differ for minimum wage, overtime, leave, vacation and termination.
What happens when employment ends?
The applicable process may involve notice, pay in lieu, accrued vacation, a Record of Employment and, in some cases, severance or additional common-law obligations. The details depend on jurisdiction, tenure, contract and facts, so offboarding should be reviewed before action is taken.
Is an EOR the same as a PEO in Canada?
No. An EOR becomes the legal employer for the worker. A PEO typically supports HR and payroll through a co-employment or service relationship while your own local entity remains the legal employer.
Important:This page provides general information, not legal, tax or
immigration advice. Canadian requirements vary by jurisdiction and
individual circumstances. Confirm the current position before
hiring or terminating an employee.
Build your Canadian team
Ready to hire in Canada without an entity?
Share the role, province and target start date. TXM Solutions will map the employment route, estimated cost and next steps for your hire.