Canada

Whether venturing into North America for the first time or expanding across the border, the Canadian market is rife with opportunity. With a low corporation tax rate (15% on profits), beneficial trade agreements, a well-educated workforce, and deep ties with the United States, Canada consistently occupies a top placement on ease-of-doing-business rankings. One of the keys to success? A thorough understanding of the far-reaching tax regime.

Empowering Global Teams: From HR to Payroll Precision

HSP provides full-service international payroll processing to ensure that your employees’ pay is calculated correctly, your employees are paid on time, every time, and all required payroll compliance filings are managed seamlessly and efficiently.

Our services include standalone payroll, Employer of Record (EoR), Professional Employment Organization (PEO), Non-Resident Employer payroll – circumstances and local law permitting, – Employment tax guidance, and employee expense report support.

HSP provides full-service international payroll processing to ensure that your employees’ pay is calculated correctly, your employees are paid on time, every time, and all required payroll compliance filings are managed seamlessly and efficiently. 

Our services include standalone payroll, Employer of Record (EOR), Professional Employment Organization (PEO), Non-Resident Employer payroll (circumstances and local law permitting), employment tax guidance, and employee expense report support.

Managing a mobile international workforce, whether for short-term or long-term assignments, can add further challenges to your HR function. Through our Global Mobility Consulting group, HSP supports your company’s global mobility and expatriate strategy needs and helps you navigate the complex home, host, and cross-border country requirements.

HSP helps you prepare to send an employee overseas and helps you and the employee stay compliant while living and working abroad.

Designed to extend your in-country HR capabilities, our HR Administration services provide recurring HR support to address those common challenges associated with hiring, onboarding, paying, providing benefits, offboarding and answering the myriad of employment-related questions for your international employees.

By syncing up both the HR and the Payroll function, we ensure that you have a seamless and comprehensive solution.

Our technical consulting services address the challenges facing today’s global marketplace by assisting clients in establishing the appropriate structures to manage and support their workforce.

We understand country-specific HR and Employment best practices, compensation and flexible working packages, understanding benefits requirement and benefits sourcing, performance management, leave policies and termination/redundancy assistance.

At a Glance

No local bank account needed.

Yes, local representation is required.

The standard payroll frequency is Bi-Weekly

Yes, local registration is required.

The employer taxes are 7.5% of gross salary.

Streamlined Success: Entity Management and Beyond

HSP’s Legal Management services include entity requirement analysis and selection, incorporation and post-establishment corporate income tax, indirect tax, and other registrations and licenses. In addition, our services are designed to keep your entity operational and compliant by providing ongoing corporate secretarial support, maintenance and custody of legal records and corporate books, tax agent representation, registered office address, and annual legal compliance.

At HSP, we understand that a company must fulfill local accounting obligations while also reporting on consolidated results to investors and leadership team. With this in mind, HSP Group can assist with both the preparation of local statutory bookkeeping and Financial Reporting – that is, in local GAAP, local currency and local language, and management reporting – considering management entries, and in English.

One of the main things that keep our clients up at night is worry about whether their overseas entities are reporting, filing and paying the correct taxes in each of their respective jurisdictions. HSP’s Tax Compliance takes this burden away from our clients. Our services include both indirect (Sales Tax, VAT, GST, IVA) and direct (CIT and WHT) taxes filing preparation and submission, pre-tax assessment review, tax recovery and tax audit support.

HSP’s technical consulting services is customized to support your business to prevent and resolve many different challenges you will encounter while operating overseas. It is also designed to assist you in scaling operations and developing more efficient and compliant processes in each of your overseas locations.

Canada Awaits Your Business

Experience HSP’s expert solutions for cross-border payroll, and entity management solutions. Simplify your complexities abroad.

Good to Know

Canada is one of seven members of the G7, the informal group of global democratic nations that meet annually to discuss world economic policy and other issues. Canada’s total trade with G7 countries exceeds $1 trillion annually, contributing to the country’s status as a world economic power.

Small- and medium-sized businesses contribute significantly to the nation’s economy. In fact, they make up over 95% of all employer businesses in the country and employ over 10 million people, which is close to 70% of the total labor force.

Canada is consistently ranked as one of the healthiest, wealthiest, and happiest countries in the world. It also is a world leader in life expectancy with a top-quality healthcare system accessible to all. On the other side of the coin, many Canadians love to complain about housing costs, taxes, and being seen as secondary to the United States.

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Heavy Taxation

Between the income tax, sales taxes, payroll taxes, health taxes, property taxes and other taxes, doing business comes at a high cost. Without proper planning and a thorough understanding of the rules, it can be difficult to succeed in Canada.

Complex Tax & HR Rules

Different provinces/territories have different types of payroll taxes and, at times, require companies to engage with several regulatory bodies. It is imperative for businesses to stay up-to-date on the rules and know which body to communicate with as mistakes can be costly. HR laws are so complicated that outside help is often used for writing and negotiating employee contracts.

Compliance Reviews

Timely bookkeeping is of crucial importance, yet some companies are either unaware or ignore this fact. Audits and compliance reviews happen often, and lack of on-target bookkeeping can result in penalties for the business.

Next Steps

We can help you take full advantage of the Canadian market. Our expert-led managed services and technical consulting were designed to help you expand with ease, regardless of regulatory complexity.

When you partner with us, you gain immediate access to GateWay, our pioneering platform that unifies all your applications and data for cross-border success in a single place, including Payroll, HR, Accounting, Tax, and Statutory Compliance. Consider it your one-stop-shop for global growth.

“While local vendors tend to primarily care about their sliver of the business, HSP Group is, as the single provider, fully invested in the success of the entire organization.” 

Head of Finance and Operations at a fast-growing FinTech

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Four Critical Mistakes to Avoid when Expanding Globally

Capitalizing on your business’s domestic momentum and embarking on a multinational expansion is a time-sensitive opportunity. However, in this critical process, mistakes can happen.

Download our short PDF to avoid these common international expansion pitfalls and ensure your success!