7 EOR Services in Canada for 2026: Providers & Reviews

What Is an Employer of Record: And Why Does It Matter in Canada?

An Employer of Record is a third-party organization that becomes the legal employer of your talent in Canada. They hire employees on your behalf, manage payroll and taxes, administer benefits, ensure compliance with provincial workplace rules, and stay on top of evolving Canadian employment standards.

In Canada, an EOR helps you manage a complex mix of federal and provincial obligations. At the federal level, employers must follow the Canada Labour Code and handle Employment Insurance (EI), Canada pension Plan (CPP), and tax requirements. Each province and territory then adds its own employment standards – including different rules for minimum wage, overtime, termination, vacation, and employee leaves.

Employers also need to manage mandatory contributions that follow strict payroll cycles and tax remittances set by the Canada Revenue Agency (CRA) and Revenu Québec. On top of that notice periods and entitlements vary widely across provinces and are generally very employee-protective.

A few common challenges companies encounter when hiring in Canada:

• Correctly categorizing employees vs. contractors (misclassification is heavily enforced).
• Managing province-by-province vacation, leave, and overtime compliance.
• Handling Québec-specific payroll, taxes, and employment standards, which differ from the rest of Canada.
• Calculating source deductions (CPP, EI, federal/provincial taxes) and remitting them accurately and on time.
• Understanding statutory holiday entitlements (which vary widely by province and industry).
• Navigating complex termination rules, including reasonable notice and statutory severance.

And beyond regulations, Canadian teams place high value on workplace culture: transparency, psychological safety, work-life balance, and comprehensive health benefits. Competitive employer branding matters, and a strong EOR can help shape that employee experience.

Check out our Compliance Hub for detailed insights on Canada

Why a High-Quality EOR Is Essential in Canada

Canadian compliance is strict, detailed, and often province-specific. Even small payroll or tax errors can result in CRA penalties, legal disputes, or reputational damage.

A strong Canadian EOR provides:

• Local Fluency: Local-level understanding of CRA payroll rules, CPP/EI, provincial labor standards, Québec-specific requirements, ESA compliance, overtime calculations, protected leaves, and employment contract norms.
• Rapid Adaptation: Canadian payroll regulations shift frequently – tax rate updates, CPP enhancements, EI changes, minimum wage increases. A strong EOR adapts instantly.
• Risk Shielding: Proper termination handling, compliant notice calculations, employment agreement drafting, and adherence to occupational health and safety (OHS) rules.
• On-the-Ground Insight: Canadian employment practices are highly procedural. EORs with in-country teams know how provincial authorities operate, what documentation is required, and how to avoid compliance delays.

Hiring in Canada and Looking For Local Support?

From Québec tax rules to British Columbia overtime laws, our on the ground team simplifies Canadian compliance end-to-end.

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What Should You Consider When Choosing an Employer of Record in Canada?

If you’re evaluating EORs for Canada, look for these foundational capabilities:

• Local Compliance & Regulatory Expertise: They should understand federal rules plus each province’s employment standards – including minimum wage, overtime, termination rules, vacation pay, protected leaves, and statutory holidays. Check if they have in-depth understanding of Québec-specific processes (CNESST, QPIP, Revenu Québec) as well.
• Entity Ownership vs. Subcontracting: EORs who own their Canadian entity, like Playroll, generally deliver cleaner payroll runs, faster onboarding, and clearer accountability. Those that use local partners tend to run into more payroll challenges and processes are significantly slower.
• In-Country Presence: Local specialists matter. Canadian compliance varies widely by province, and on-the-ground expertise is crucial for payroll adjustments, terminations, and adherence to provincial standards.
• Technology & Platform Capabilities: Look for automated payroll, employee portals, expense and time-off management, integrations, and real-time CRA/Revenu Québec tax updates.
• Pricing Transparency: Ensure full clarity on EOR fees, provincial taxes and contributions, CAD ↔ USD currency conversion, benefits costs, and any offboarding charges.
• Payroll Reliability & Accuracy: Canadian payroll must follow strict CRA and Revenu Québec schedules – errors in source deductions or remittances can quickly trigger penalties.
• Customer Support Responsiveness: Canada is detail-heavy. You’ll want fast, knowledgeable support for employee questions, payroll corrections, and province-specific compliance guidance.

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Estimated Cost for Hiring an Employee in Canada Through an EOR

Canadian EOR pricing typically ranges from $399–$950 USD per employee per month. Costs depend on province, role seniority, payroll complexity, benefits needs, and whether the employee is based in Québec (where payroll requirements differ significantly).

How much does an EOR actually cost?

Leading Employer of Record Providers in Canada

Below is a curated list of reputable, Canada-capable EOR partners able to support compliant hiring across provinces and territories.

• Playroll: A global EOR operating in 180+ countries with strong Canada expertise. We offer fast onboarding, transparent pricing, AI-driven compliance checks, automated payroll workflows, and 24/5 support. You can expect robust guidance on Québec payroll, provincial ESA rules, termination calculations, and benefits. Plus we’ve got boots on the ground at our Canadian entity, which means we’ve built sustainable relationships with local vendors and first-hand understanding of Canadian labor laws. Best for teams prioritising accuracy, speed, and high-touch support across Canada.
• Deel: A well-known global EOR with its own Canadian entity, supporting compliant contracts, payroll, and benefits across provinces, including both English and French regions. Deel is well suited to companies that want a polished, feature-rich platform with strong automations and integrations. One drawback is that customer support responsiveness can be inconsistent, particularly as accounts scale or requirements become more complex.
• Remote: A global employment platform with strong coverage across Canadian provinces and territories. Known for intuitive onboarding, thorough compliance documentation, and solid Québec support. However, some users find the platform interface cluttered or unintuitive, making certain workflows harder to navigate.
• Multiplier: A global EOR provider offering quick contract generation and straightforward pricing. Often chosen by smaller companies making their first Canadian hires who prefer simplicity over enterprise complexity. A limitation is the lack of advanced reporting and customization, which can become restrictive as teams grow.
• G-P (Globalization Partners): An enterprise-focused EOR with mature processes around risk management, benefits administration, and complex hiring programs. A strong fit for large or scaling teams building a significant Canadian workforce. That said, pricing transparency can be limited, with additional fees sometimes emerging for setup, changes, or currency conversions.
• Papaya Global: A payroll-centric global EOR with a strong analytics and BI layer, enabling organizations to consolidate payroll data across multiple countries, including Canada. Ideal for finance-led teams prioritizing reporting and automation. Because Papaya relies on third-party employment providers, payroll and invoicing timelines can occasionally be slower.
• Native Teams: A flexible global employment platform offering EOR, contractor management, and localized benefits. Works well for distributed teams hiring in Canada as part of a broader international workforce. One challenge is slower onboarding timelines combined with heavy reliance on email-based communication, which can reduce visibility and speed.

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Curious How Playroll Compares?

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Insights from Real Users

Playroll

“The platform is remarkably intuitive, and the support team is both highly responsive and proactively engaged - they consistently go above and beyond to offer assistance whenever needed.

Equally commendable is Playroll’s meticulous attention to compliance across multiple jurisdictions, paired with transparent visibility into contracts, payments, and essential documentation, all consolidated in a single, accessible hub.”

- Verified G2 User

Deel

“The platform is straightforward to use and easy to navigate. I appreciate that it provides access to all the information for every transaction as well. At times, the conversion rate can be low, and I have noticed a slight delay in transferring money, particularly on weekends or holidays.”

- Verified G2 User

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Using an EOR vs. Setting Up an Entity in Canada

If you’re hiring your first employees in Canada, your biggest decision is whether to use an EOR or incorporate a Canadian subsidiary.

Use an EOR if:

• You need to hire quickly
• You’re testing the Canadian market
• You want to avoid CRA payroll accounts and remittances
• You’re starting with a small team (<15 employees)
• You don’t want to handle provincial compliance and benefits setup

Set up an entity if:

• You plan to scale beyond 20+ Canadian employees
• You want local business operations, offices, or tax optimization
• You need local IP, permits, or long-term infrastructure

Costs to consider:

• Incorporation in Canada: $300–$3,000
• Annual corporate filings & bookkeeping: $4,000–$15,000
• Payroll account setup, provincial registrations, and benefits onboarding: $500–$5,000 initial (CRA payroll/Business Number registration free online; provincial EHT/WSIB setup $0–$500; software/provider setup $200–$1,000; benefits enrollment $1,000–$4,000 including admin and training).
• Québec-specific systems (CNESST, Revenu Québec, QPIP: $1,000–$5,000+ annually per employee

For most companies hiring their first Canadian employees, an EOR is faster, safer, and more cost-efficient than establishing your own entity.

That being said, it’s a good idea to check if your chosen EOR provider has their own entity instead of relying on partners to provide their services. A direct  in-country presence means strong local relationships, more comprehensive understanding of the labor laws, quick resolution of any challenges that pop up, and more accurate payroll runs.

Onboarding Process Through an EOR in Canada

Partnering with an EOR in Canada turns what can be a paperwork-heavy process into a smooth, predictable experience for both employers and employees. The workflow is streamlined but thoughtfully structured to meet federal and provincial requirements while helping new hires feel supported from day one.

1. Collecting Required Information

The process begins with you as the employer collaborating with your employees and gathering essential details like the employee’s SIN, bank information, and completed tax forms (TD1 federally and TP-1015.3-V in Québec). Depending on the role, the EOR may also facilitate background checks or security screenings – common in finance, technology, and regulated industries. This is where the groundwork for accurate payroll and compliance is set.

2. Issuing a Compliant Employment Contract

Next, the EOR drafts a province-specific employment agreement that reflects local employment standards. This includes probation, notice periods, vacation pay percentages, overtime eligibility, and protected leave entitlements.

Because Canada’s rules vary widely by province – and Québec operates almost like its own ecosystem – this step is crucial for ensuring the working relationship is airtight and compliant.

3. Setting Up Mandatory Registrations

Once the contract is signed, the EOR completes all statutory registrations behind the scenes, typically within the first few days of employment to ensure seamless compliance. These registrations ensure the employee is covered under federal and provincial social security programs from day one, with the EOR handling remittances, reporting, and documentation via CRA's payroll account.

This includes:

Enrolling the employee in Canada Pension Plan (CPP) and Employment Insurance (EI): The EOR handles registration with the Canada Revenue Agency (CRA) so contributions are automatically deducted from pay.

• CPP (Retirement pension): Both employee and employer pay 5.95% on earnings from $3,500 up to $74,600 (max ~$4,230 each). Higher earners pay an extra 4% each on earnings between $74,600 and $85,000 (max ~$416 each).
• EI (unemployment, sickness, and some parental benefits): Employee pays 1.63% and employer pays 2.28% on earnings up to $68,900 (max ~$1,123 employee, ~$1,572 employer). Reported on T4 slips.

Configuring Provincial Entitlements: The EOR sets up province-specific rules, like registering for local workers' compensation (e.g., WSIB in Ontario or WorkSafeBC). Key differences across provinces:

• Minimum Wage: Typically $15–$18/hour (many provinces hitting $17+ in 2026).
• Paid Vacation: usually 2–3 weeks (4–6% of pay).
• Statutory Holidays: 9–13 paid days per year.
• Leaves: Vary widely (e.g., up to 27 weeks unpaid sick leave in BC). Note: Québec uses its own Quebec Pension Plan (QPP) instead of CPP.

Managing CNESST (workers’ compensation) and QPIP (parental insurance) requirements (for Québec-based employees only): The EOR registers with Québec authorities.

• CNESST: Covers workplace injuries (e.g., 90% income replacement if hurt). Employer pays average 1.54% of payroll; also funds Health Services (1.25%–4.26% depending on total payroll).
• QPIP: Better parental leave benefits (up to ~75% income replacement). Employee pays 0.455% and employer pays 0.636% on earnings up to ~$103,000. This replaces the federal EI parental portion in Québec; payments sent quarterly.

4. Configuring Payroll & Benefits

With compliance in place, the EOR sets up payroll according to Canada Revenue Agency (CRA) and Revenu Québecrules, ensuring accurate withholding for taxes, Canada Pension Plan CPP and EI contributions, and any province-specific programs such as Ontario’s Employer Health Tax (EHT) or the British Columbia Medical Services Plan (BC MSP).

This is also when benefits are activated – including extended health and dental coverage, life and disability insurance, and optional Registered Retirement Savings Plan (RRSP) contributions.

Competitive benefits are a major expectation in Canada, so this step carries real weight for talent attraction and retention.

5. Fast Activation

Once everything is configured, the employee is ready to start. Most Canadian hires can be fully onboarded and activated within 24–72 hours, depending on documentation turnaround and province-specific requirements.

From here, payroll runs automatically, compliance stays up to date, and the employee has a clean, confident start with your team.

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Compliance Considerations for Hiring Employees in Canada

Hiring in Canada means navigating a blend of predictable national systems and highly nuanced provincial rules. The country has strong federal frameworks that set the foundation for payroll, taxation, and social programs – but each province and territory layers on its own employment standards, leave entitlements, holiday rules, and workplace protections.

For employers, that means compliance isn’t just a box to tick; it’s an exercise in understanding how work actually functions across different regions of the country.

Here’s what employers should expect:

Need Province-Specific Guidance for Hiring in Canada?

Our Canada Hiring Guide breaks down labor laws, payroll cycles, provincial differences, and more.

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Key Takeaways

Hiring in Canada gives companies access to world-class talent, stable markets, and a business-friendly environment – but success depends on navigating provincial nuances, strict payroll rules, and detailed employment standards. The right EOR partner will help you hire quickly, stay compliant, and provide a great employee experience from day one.

If you’re looking for fast onboarding, accurate payroll, transparent pricing, and standout in-country support, Playroll delivers a powerful all-in-one solution for your Canadian expansion. Want to see how our boots on the ground work in practice?

Book a demo with our team and see why we’re the smartest choice for hiring in Canada.