Canada has emerged as one of the most attractive destinations for global companies expanding into North America. With a population of nearly 40 million, a highly educated workforce, and access to both U.S. and international markets, hiring in Canada provides companies with strategic advantages across technology, healthcare, finance, and energy sectors.
However, entering the Canadian market comes with challenges. Companies must navigate complex federal and provincial labor laws, bilingual regulations (English and French), intricate tax systems, and mandatory social contributions. Establishing a local entity can be time-consuming and expensive.
This is where a PEO in Canada or an Employer of Record (EOR) becomes crucial. By partnering with a trusted provider like Asanify, you can hire in Canada, run payroll outsourcing, manage employee benefits, and stay compliant—all without setting up a Canadian entity.
Table of Contents
- What Is a PEO in Canada?
- PEO vs EOR in Canada — What’s the Difference?
- Why Use a PEO in Canada Instead of Setting Up an Entity?
- Key Employment Insights in Canada (Handled by Asanify)
- No Entity? No Problem
- How a PEO Helps With Payroll, Tax & Benefits in Canada
- Canadian Labor Laws Made Simple With a PEO
- When to Choose a PEO Over Other Hiring Models
- What to Look for in a Canadian PEO Partner
- Asanify’s Advantage as a PEO in Canada
- What Does It Cost to Build a Team in Canada?
- Why Choose a PEO in Canada?
- Ready to Hire in Canada? Here’s What to Do Next
- FAQs
What Is a PEO in Canada?
A Professional Employer Organization (PEO) is a partner that acts as a co-employer, managing HR, payroll, and compliance for your Canadian workforce. With a PEO, companies can:
- Run compliant payroll in CAD with proper deductions.
- Administer statutory benefits like CPP, EI, and provincial health.
- Draft bilingual (English/French) compliant contracts.
- Handle employee onboarding and HR documentation.
- Manage global contractor compliance.
With Asanify’s PEO services, you can build a compliant team in Canada in under a week while focusing on scaling your business.
PEO vs EOR in Canada — What’s the Difference?
| Feature | PEO in Canada | EOR in Canada |
| Legal Employer | Shared (client + PEO) | EOR acts as full legal employer |
| Entity Requirement | Requires local entity | No entity required |
| Payroll & Benefits | Managed jointly with client | Fully managed by EOR |
| Best For | Companies with local entities | Startups & scaleups testing the market |
| Contracts | Issued by client with PEO support | Issued directly by EOR |
| Immigration/Visas | Managed by client | Managed by EOR provider |
Why Use a PEO in Canada Instead of Setting Up an Entity?
Expanding to Canada with a PEO offers major advantages:
- Hire Top Talent Quickly: Skip the 8–12 week entity setup and start onboarding Canadian employees in days.
- Lower Costs: Avoid upfront legal, tax, and HR infrastructure costs.
- Compliance Guarantee: Stay aligned with Canada Labour Code and provincial labor laws.
- Scalable Operations: Easily expand across provinces like Ontario, Quebec, and British Columbia.
Key Employment Insights in Canada
Payroll:
- Payroll is typically biweekly or monthly.
- Employer contributions include CPP, EI, and provincial health premiums.
Leave Policies:
- Federal minimum vacation: 2–3 weeks depending on tenure.
- Public holidays: 6–10 days depending on province.
- Parental leave: Up to 18 months shared.
- Sick leave: 5–10 days depending on jurisdiction.
Mandatory Benefits:
- CPP (Canada Pension Plan) contributions.
- EI (Employment Insurance).
- Provincial health insurance (varies by province).
- Workers’ compensation coverage.
Income Tax (2025):
- Federal tax brackets: 15%–33%.
- Provincial taxes add ~5%–20% depending on location.
Suggested Read: Labour Laws in Canada: Everything Employers and Employees Need to Know in 2025
No Entity? No Problem
With PEO services in Canada, you don’t need to set up a Canadian subsidiary to hire employees. We act as your local compliance partner, managing payroll, taxes, and HR compliance while you focus on business growth.
How a PEO Helps With Payroll, Tax & Benefits in Canada
Managing payroll in Canada requires knowledge of both federal and provincial laws. A PEO handles:
- Biweekly or monthly payroll runs.
- Gross-to-net salary calculations.
- Income tax, CPP, EI, and provincial deductions.
- Benefits administration (health, dental, retirement plans).
- Filing of ROEs (Records of Employment) and year-end T4 slips.
Canadian Labor Laws Made Simple With a PEO
Labor regulations in Canada vary between federal and provincial jurisdictions. A PEO ensures compliance across:
- Work hours (8/day, 40/week standard).
- Overtime rules (1.5x pay after 40–44 hours depending on province).
- Minimum wage (varies by province, ~CAD 15–17/hour in 2025).
- Termination notice periods and severance.
- Collective bargaining agreements in unionized sectors.
When to Choose a PEO Over Other Hiring Models
A PEO in Canada is ideal when you:
- Need to test the Canadian market quickly.
- Want to hire small teams without entity setup.
- Require compliance support across multiple provinces.
- Plan to reduce upfront HR and legal costs.
What to Look for in a Canadian PEO Partner
When selecting a PEO in Canada, consider:
- Expertise in federal + provincial labor laws.
- Bilingual support (English and French).
- Transparent, predictable pricing.
- Digital-first HR & payroll automation.
- Contractor and full-time employee management.
- Support for visa/work permit processing.
Asanify’s Advantage as a PEO in Canada
Asanify combines automation, compliance, and local expertise:
- Onboarding in under 5 business days.
- Automated payroll & tax filings.
- Compliance dashboard with real-time monitoring.
- Statutory + supplementary benefits coverage.
- HR software to manage remote teams.
- Dedicated account managers for Canada.
What Does It Cost to Build a Team in Canada?
Companies typically choose between:
Option 1: Setting Up a Canadian Entity
- Requires business registration, tax setup, HR systems.
- Timeline: 8–12 weeks.
- Cost: CAD 15,000–30,000+ upfront.
Option 2: Partnering with a PEO in Canada (Asanify)
- No entity required.
- Onboarding in days.
- Fully compliant payroll outsourcing & HR support.
Indicative Monthly Pricing (2025):
| Service Type | Starting From (Per Employee/Month) |
| PEO Solution | $49 USD |
| Employer of Record | $199 USD |
Why Choose a PEO in Canada?
- Onboard employees faster than entity setup.
- Reduce compliance risks and legal costs.
- Offer competitive compensation + benefits.
- Scale teams across multiple provinces with ease.
- Focus on business growth while Asanify manages HR.
Suggested Read: Employer of Record Canada: A Comprehensive Guide 2025
Ready to Hire in Canada? Here’s What to Do Next
Hiring in Canada doesn’t have to be complex. Schedule a free consultation with Asanify to align your hiring goals with Canadian compliance. With our platform, you can onboard employees in under a week, run payroll outsourcing and tax filings, provide statutory and market-competitive benefits, and manage both global contractors and employees seamlessly in one dashboard. You’ll also gain access to real-time HR software and compliance insights, ensuring your operations remain efficient and fully compliant. With Asanify, you can confidently hire in Canada, pay teams accurately, and scale quickly—without the burden of setting up a local entity.
FAQs
A PEO requires a local entity and co-employs staff, while an EOR acts as the legal employer without entity setup.
Usually within 5–7 business days.
Employers contribute to CPP, EI, provincial health, and workers’ compensation.
Yes, PEOs like Asanify manage global contractors while ensuring compliance.
Yes, depending on tenure and provincial law, notice and severance may apply.
Yes, we provide English and French contracts for compliance.
Around $49–$199 USD per employee/month.
Yes, EOR/PEO providers like Asanify assist with work permits and visas.
CPP, EI, provincial health insurance, and statutory leave entitlements.
Yes, Asanify provides smooth transition support when you set up an entity.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
