How to Hire Using an Employer of Record in Canada (2025 edition)

Hiring workers in Canada opens access to a diverse talent pool and a stable business environment. However, managing employees under Canadian employment laws, setting up a legal entity, and navigating payroll taxes and income taxes can be time-consuming and costly. Traditional entity setup involves months of delays and tens of thousands in legal fees and registrations. Many key aspects of hiring and managing a team (leave entitlement, minimum wage, income tax, etc) vary by province, which can make compliance complicated to navigate manually from overseas.

An Employer of Record (EOR) service in Canada solves these hurdles by becoming the legal employer while you direct daily work. The EOR handles payroll taxes, employee benefits, tax withholdings, and ensures compliance with all local labour laws and legal requirements. Deel’s wholly-owned Canada employer of record entity accelerates hiring in 150+ countries with transparent pricing, real-time compliance alerts, and an all-in-one platform.

What is a Canadian employer of record?

A Canadian employer of record (EOR) legally employs workers on your behalf, splitting legal and operational roles. Legally, the EOR hires, pays, and maintains statutory records. Operationally, you manage performance and daily tasks. This model shifts liability for payroll deductions, benefits administration, and compliance with Canadian employment laws to the EOR.

Deel operates a wholly-owned Canadian entity, ensuring every Canada Pension Plan (CPP), Employee Insurance (EI), and provincial payroll tax requirement is met without you needing to register a legal entity locally. With Deel, you tap into global reach, real-time compliance monitoring, and a user-friendly platform that automates contracts, payroll, and benefits packages.

Top reasons to use an EOR in Canada

Global companies often face high setup costs and compliance gaps when opening a Canadian legal entity. An EOR service in Canada streamlines this by handling entity registration, payroll filings, and employee benefits. Here are the key benefits:

• Mitigate misclassification risk: EORs ensure correct employee classification under federal and provincial standards, avoiding costly fines.
• Simplify payroll complexity: Automate CPP and EI payroll deductions per province.
• Reduce administrative overhead: Eliminate entity formation, tax registration, and monthly filings with one EOR provider
• Accelerate time to hire: Launch hires in days, not months, thanks to pre-registered Canadian entities
• Access global platform: Manage workers in Canada and across 150+ countries with one login and consistent processes

How to hire in Canada: Step-by-step guide

Follow this 8-step checklist to onboard employees in Canada quickly and compliantly with an EOR.

1. Choose an EOR with a wholly-owned Canadian entity

Select an EOR that owns its Canadian entity to guarantee compliance with federal and provincial tax, labour law, and data privacy requirements. A wholly-owned entity avoids subcontractor risks and ensures direct accountability. The EOR will register for CPP, EI, provincial payroll tax IDs, and workers’ compensation.

Tip: Confirm entity registration numbers and proof of local audits.

2. Book a demo and verify social proof

Request a live demo to explore the EOR’s interface, compliance dashboard, and reporting tools. Review case studies from companies hiring workers in Ontario, Quebec, or British Columbia. Scan reviews on G2 and Trustpilot, where Deel EOR holds a 4.8/5 average.

Tip: Ask for references in your industry to validate service quality.

3. Request a transparent EOR quote

Obtain an itemized quote covering gross salary, CPP, EI, provincial payroll levies, and the EOR’s service fee. Ensure the fee structure is flat-rate per employee or payroll cycle—no hidden extras. Deel’s quote generator shows employer costs upfront and provides cost modelling you can adjust live.

Tip: Compare quotes side by side to spot hidden markups.

4. Submit a 12–24-month hiring plan

Share your projected headcount, roles, and geographies to help the EOR optimize staffing and compliance strategies. This foresight allows the EOR to scale entity coverage, negotiate benefits, and plan for payroll volume changes. Deel’s workforce planning module offers real-time data and AI insights.

Tip: Update your hiring plan quarterly to reflect market shifts.

5. Create the employment contract in the platform

Draft contracts using the EOR’s contract generator, embedding federal and provincial clauses—probation periods up to three months, IP assignment, confidentiality. Deel’s templates auto-populate local statutory notices and benefits summaries.

Tip: Customize benefits by province, but keep core legal language intact.

6. Confirm the candidate’s right to work

Verify work permits, permanent residency, or citizenship documents. For foreign nationals, EORs like Deel support visa and permit applications via Deel Immigration. Document verification is securely stored under PIPEDA requirements.

Tip: Use the platform’s digital document portal to avoid manual storage.

7. Run the onboarding workflow

Activate onboarding tasks in the EOR platform: tax form completion, benefits enrollment, and device provisioning with Deel IT support. The EOR manages CPP and EI registration, health coverage setup, and workers’ compensation registration. Real-time alerts notify you of missing steps.

Tip: Assign an internal point person to monitor the onboarding dashboard.

8. Maintain ongoing compliance

Rely on the EOR to file payroll, source deduction reports, and conduct record-keeping audits. Stay informed on CPP rate changes, provincial leave updates, and data privacy alerts via Deel Compliance Hub.

Tip: With Deel, schedule quarterly compliance review meetings with your dedicated EOR manager.

Employment compliance tasks an Employer of Record manages in Canada

Your EOR takes on key employer obligations, ensuring you meet all statutory requirements.

How much does an EOR in Canada cost?

Hiring costs in Canada combine gross salary, statutory employer costs, and EOR fees. Deel’s transparent flat-fee pricing covers payroll, benefits, compliance, and HR support without hidden markups.

Which Canada EOR should you choose?

When evaluating employer of record services in Canada, focus on these criteria:

• Entity ownership: Ensure the provider owns its Canadian entity to avoid subcontractor risk and ensure direct compliance
• Compliance expertise: Look for real-time compliance monitoring, local legal specialists, and up-to-date statutory templates
• Platform breadth: Choose a global HR platform that offers payroll in 150+ countries, benefits management, equity, mobility, and IT device support

Deel stands out as a leading Employer of Record in Canada with a wholly-owned Canadian entity, real-time compliance alerts via Deel Compliance Hub, and a unified platform supporting hiring in 150+ countries.

Is Deel EOR a strong choice for hiring in Canada?

Deel is a top EOR solution in Canada, offering a wholly-owned Canadian entity that ensures full compliance with CPP, EI, and provincial labour laws. With Deel, you avoid the costly and time-consuming process of entity setup while gaining access to a global platform trusted by thousands.

• Operates a wholly-owned Canadian entity, eliminating subcontractor risks
• Compliant with Bill 96 - offering customer support services and critical documentation in French.
• Trusted G2 leader with high user satisfaction and positive reviews
• Covers statutory employer costs, including CPP
• Simplifies provincial payroll complexity and tax withholding
• Accelerates hiring time to days, not months
• Supports compliance with Canadian data privacy laws (PIPEDA)
• Provides real-time compliance alerts and automated reporting
• Enables hiring in 150+ countries through one platform
• Transparent flat-fee pricing with no hidden costs
• Offers comprehensive benefits and probation period management

Deel’s seamless Canada hiring experience fits perfectly into your long-term global growth strategy.

See how Sellit9 used Deel EOR to scale payroll and hiring operations.

Hire employees in Canada confidently with Deel Employer of Record

Speed up your Canadian hiring with Deel’s fully compliant EOR service. By leveraging our wholly-owned Canadian entity, you can onboard employees quickly without the hassle of local entity setup or complex payroll tax registrations.

Get transparent pricing upfront, with no surprises or hidden costs, and manage your workforce across 150+ countries from a single platform.

Ready to expand your team in Canada? Schedule a demo now and discover how Deel’s EOR solution delivers speed, compliance, and cost savings—all backed by our G2 leadership.