Best Employer of Record in Canada

An Employer of Record (EOR) becomes the legal employer for your Canadian hires. It handles payroll, remits statutory contributions to CRA and provincial agencies, manages employment contracts, and takes on compliance obligations under provincial employment standards acts. Your company directs the day-to-day work. This is the standard model for foreign companies hiring in Canada without a local entity.

How to choose the right EOR for Canada

The four vendors compared on this page serve Canada with different strengths. Here is how to pick the right one for your situation.

Hiring 1-10 employees and want to know the cost upfront? Start with Plane. At USD 499/mo per employee with no setup fees, a 5-person team costs USD 2,495/mo in EOR fees. Boundless starts lower (GBP 149/mo) but the “from” price may increase for Canada. Both are significantly cheaper than the quote-only vendors for small teams.

Hiring in Quebec? Globalization Partners is the only vendor that documents bilingual support for Charter of the French Language compliance. Quebec requires French-language employment contracts and has francization requirements for workplace communications. If you are hiring in Montreal or anywhere in Quebec, this capability matters.

Enterprise buyer with multi-country needs? G-P (180+ countries) or Safeguard Global (170+ countries, permanent entities) offer the breadth and stability enterprise procurement teams require. Both are quote-only, so expect a sales process.

Need immigration support? Only Plane documents visa and work permit assistance on its Canada page. If LMIA sponsorship or work permit processing is part of your hiring plan, start there and confirm specifics. The other three vendors do not disclose immigration capabilities publicly.

When evaluating any vendor, also check: contract flexibility (annual vs. monthly commitments), payroll cycle options (bi-weekly is the Canadian norm; monthly creates friction), benefits customization (fixed package vs. adjustable), and service model (self-serve platform vs. white-glove account management). The right fit depends on your in-house HR capacity.

What an EOR handles in Canada

Canadian employment law is primarily provincial, not federal. An EOR registered in Canada manages these obligations so you do not have to:

Obligation	What the EOR does
Payroll contributions	Remits CPP or QPP, Employment Insurance, and applicable provincial payroll taxes (EHT in Ontario, QPIP in Quebec)
Tax withholding	Withholds federal and provincial income tax under the correct T4032 tables
Workers compensation	Pays premiums to WSIB (Ontario), WorkSafeBC, WCB-Alberta, or CNESST (Quebec)
Employment contracts	Issues contracts compliant with the applicable provincial Employment Standards Act
Record of Employment	Issues the ROE when employment ends or earnings are interrupted

The provincial variation matters. Ontario’s Employer Health Tax (EHT) applies to payroll above CAD 490,000 at up to 1.95% — an EOR with many clients will have crossed this threshold, so EHT applies to your employees regardless of your own payroll size. Quebec runs its own pension plan (QPP) and parental insurance plan (QPIP), with remittances going to Revenu Quebec rather than CRA; a Quebec-capable EOR maintains both relationships. BC and Alberta have simpler structures: BC has its own EHT (above a much higher CAD 1.5M threshold, typically absorbed at the EOR level), and Alberta has no provincial payroll tax at all.

What an EOR costs in Canada

EOR fees are on top of statutory employer contributions. To understand your real cost, you need both figures.

For a CAD 80,000 salary in Ontario, the statutory employer costs break down roughly as follows:

• CPP (Canada Pension Plan): approximately CAD 4,000/year (2026 employer rate of 5.95% on pensionable earnings up to the maximum)
• EI (Employment Insurance): approximately CAD 1,500/year (2026 employer rate of 1.4x employee premium, applied to insurable earnings up to CAD 68,900)
• EHT (Ontario Employer Health Tax): approximately CAD 1,600/year (1.95% on Ontario remuneration, applied at the EOR entity level)
• Vacation accrual: approximately CAD 3,200/year (4% of gross for employees with under 5 years service under Ontario ESA)

Total statutory employer cost: roughly CAD 10,300/year. Add the salary and the EOR fee (Plane’s USD 499/mo is approximately CAD 6,700/year) and the all-in cost is roughly CAD 97,000-98,000/year. Quote-only vendors may differ.

Use the EOR cost calculator to model your specific salary and province.

Key things to know

Provincial rules differ significantly. Termination notice, severance pay, vacation entitlements, and contract requirements all vary across Ontario, Quebec, BC, and Alberta. Your EOR handles this, but you should understand the basics so you can evaluate vendor coverage. See our province-specific guides for details.

Quebec is a distinct employment jurisdiction. Quebec requires French-language employment contracts, has its own pension plan (QPP instead of CPP), its own parental insurance plan (QPIP instead of federal EI parental), and has francization requirements. Not all EOR vendors handle Quebec well.

PE risk is reduced, not eliminated. Under the Income Tax Act, a PE arises from a fixed place of business or from an agent who habitually exercises authority to conclude contracts for your company. The EOR addresses the payroll-account trigger (the EOR holds the BN and payroll account) but not the contract-authority trigger. PE exposure means Canadian corporate tax filing obligations, not just payroll compliance. If your Canadian employees negotiate deals or sign agreements for your company, get specific Canadian tax advice.

Termination obligations vary by province. Statutory notice periods range from 1-8 weeks depending on service length and province. Ontario is the only province with a statutory severance pay obligation separate from notice: employees with 5+ years of service at employers with CAD 2.5 million or more in Ontario payroll are entitled to additional severance pay. An EOR handles termination compliance, but understanding this helps you model exit costs before you hire.

Related guides

• Hire in Canada without an entity
• EOR vs entity in Canada
• Record of Employment for foreign employers
• EOR cost calculator
• Entity vs EOR break-even calculator

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