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Canada

At Azure Global, we understand that paying contractors in another country can be complex and frustrating. Each country has its own taxation and employment law, working regulations and benefit systems. We have worked hard to find in country experts in compliance and law to ensure we understand the intricacies of HR and Payroll in other countries.

CANADA

Payroll and Benefits Guide

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Currency

Canadian Dollar (CAD)

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Payroll Frequency

Weekly/Bi-Monthly/Monthly

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Employer Taxes

Dependant on Province

 

Overview

Capital

Ottawa

Currency 

Canadian Dollar (CAD)

Date Format

dd/mm/yyyy

Languages

English/French

Economy 

10th Largest in World

Fiscal Year

1 Jan to 31 Dec

 

Tax & Social Security

Tax

Canadian employers are required to calculate, withhold, remit and report all employee and employer deductions including tax and social security based on the employees gross payroll and in align with the current government and provincial

requirements.

 

Tax is split into Federal and Provincial taxes and is based on employees earnings.

 

Federal tax rates for 2021

15% on the first $49,020 of taxable income,

20.5% on taxable income over $49,020 up to $98,040

26% on taxable income over $98,040 up to $151,978

29% on taxable income over 151,978 up to $216,511

33% of taxable income over $216,511

Provincial Tax Rates 2021

Rates of Provincial tax are calculated as a rising % of proportion of earnings as Federal taxes but vary from Province to Province.

 

Payroll

Payroll Cycle 

Employers must pay employees at least one a month and within ten consecutive days from the end of the pay period.

Azure Global can pay your workers at the frequency that is best for you and your client.

 

Leave

Paid Time Off

Employees earn paid vacation based on the amount of continuous employment. Employees must take their earned vacation in the 12 months in which they earn it. 

  • Less than 1 year of employment- No entitlement unless stated otherwise in the employment contract

  • 1-5 years of employment- 2 weeks’ paid leave

  • 5+ years of employment- 3 weeks’ paid leave

Public Holidays

There are 9 public holidays.

Sick Days

Employees are entitled to up to 16 weeks of leave due to illness or injury. To be eligible, the employee must have been employed for at least 90 days and must provide a medical certificate.

Maternity Leave

Employees with at least 90 days of continuous employment are entitled to 16 consecutive weeks of unpaid leave.

Parental Leave

Parents are entitled to 62 weeks of unpaid leave are granted to birth and adoptive parents. Parental leave can begin any time after the birth or adoption of the child and must end within 78 weeks of birth.

Other Leave

Bereavement leave: Employees with at least 90 days of continuous leave are entitled to 3 days for bereavement leave per year for the death of an immediate or extended family member. This leave is not paid unless it is stated in the employment contract or collective agreement.

VAT

 
VAT

The VAT rate in Canada is 5% and applies to most goods and services with few exceptions.

 

How  Azure Global operate in Canada

Legal and Compliance

For our clients, we can provide legal and compliant contracts of engagement between the parties involved alongside the contract between the worker and the client.

Technology

We use the latest technology to streamline the payroll process, including online timesheets, same day payments and electronic invoicing.

Insurance

Azure Global has significant levels of in-country insurance to ensure all workers are fully protected and risk are mitigated.

Payroll

Azure Global can pay your workers at the frequency that suits your requirements whether that is weekly, bi-weekly or monthly.

Protection

Azure Global provide Workers Compensation Insurance in every Province as required by law.

Currency

We can pay your workers and invoice our client in the currency that best meets your requirements.