Employer of Record
Employment standards in Canada — minimum wage, vacation entitlement, termination notice — are set by the employee's province or territory, not one national rule, though a federally regulated employer follows the federal Canada Labour Code instead. Share the role, the employee's province and start date, and PIO confirms the available arrangement, then helps coordinate the contract, payroll and notice terms for that jurisdiction.
Practical points to line up before you hire in Canada.
Outside Quebec, a pay run withholds CPP, EI and federal tax, remitted to the CRA on a schedule tied to your average monthly withholding. In Quebec, QPP, QPIP and Quebec provincial tax go to Revenu Québec instead of CPP, but EI and federal income tax still go to the CRA. Exemptions, elections and annual maximums mean deductions vary — confirm the employee's province first.
Source:Employers’ Guide – Payroll Deductions and Remittances
Vacation pay and public holiday pay are fully taxable, like regular wages. Outside Quebec, that means CPP, EI and income tax; in Quebec, QPP, QPIP and Quebec tax apply instead of CPP, while EI and federal tax still go to the CRA. Amounts appear on the employee's T4. The entitlement itself — days and rate — is set separately by province, territory, or federal labour code.
Most Canada-based employees are covered by their own province's or territory's employment standards, while a smaller group working for federally regulated employers — banks, telecoms, interprovincial transportation — falls under the federal Canada Labour Code instead. A written offer needs to reflect the right jurisdiction, so confirm which one applies before finalizing the terms of a specific hire.
Under the federal Canada Labour Code, terminating an employee generally requires at least two weeks' written notice, rising one week per year to a maximum of eight weeks after three years. Exceptions: under three months of service, dismissal for just cause, or a genuine fixed-term contract's end. Severance is separate, starting at 12 continuous months. These figures apply only to federally regulated employers.
Once your hire is confirmed, here's what we help you coordinate.
You stay in control of the decisions that are yours to make.
A straightforward path from sign-up to your employee's first day.
Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.
Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.
You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.
No — outside Quebec, employers withhold CPP on pensionable earnings, EI on insurable earnings and applicable federal income tax, remitting them to the CRA. In Quebec, QPP, QPIP and Quebec provincial tax go to Revenu Québec instead of CPP, but EI and federal income tax still go to the CRA — Quebec isn't a fully separate system for every deduction. Exemptions, elections, employment status and annual maximums also mean not every employee has every deduction on every run. Confirm the employee's province and situation before you set up payroll for the hire.
Source:Employers’ Guide – Payroll Deductions and Remittances
Yes — outside Quebec, the CRA withholding method depends on how it's paid. Pay it while the employee is actually away on vacation leave, and CPP on pensionable earnings and EI on insurable earnings are withheld the same way as regular salary. Pay it as a lump sum with no leave taken, or continuously through the year, and income tax and CPP instead use the bonus-or-irregular-payment method. In Quebec, Revenu Québec applies its own equivalent rules for QPP, QPIP and Quebec income tax. Confirm which situation and jurisdiction applies before running payroll so the year-end T4 amount is right.
No. The federal Canada Labour Code's notice rules — at least two weeks in writing, rising with service to a maximum of eight weeks — apply only to employees of federally regulated employers such as banks, telecoms and interprovincial transport, and even then not to someone with under three months of service, a dismissal for just cause, or the end of a genuine fixed-term contract. Severance pay is separate, starting after 12 continuous months. Everyone else follows their own province's or territory's standards instead, so confirm the jurisdiction and exceptions before setting notice terms.
Yes — since minimum wage, vacation and termination rules in Canada depend on the employee's province or territory (or the federal Labour Code for a federally regulated role), share the role, the employee's province and your intended start date, and we confirm the available arrangement for that specific hire before onboarding begins.
Once you tell us the employee's province or territory — or that the role is federally regulated — we confirm the arrangement for that specific jurisdiction and coordinate the contract, onboarding paperwork and payroll setup accordingly. The written agreement you sign with PIO for that hire sets out exactly how those responsibilities are handled once the jurisdiction is confirmed.
Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.
Sign up to start an EOR hire in Canada. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.
