Jan 13, 2022

How to Hire Remote Employees

With remote working becoming a way of life, the world is your oyster when it comes to finding stellar candidates! But remote hiring comes with its own set of challenges, so we’re here to offer up some great tips on how to hire remote workers in Canada and what hiring process most Canadian companies need to follow when it comes to remote hiring.

Here are a few important details to keep in mind before you start your hiring process in Canada:

  • Determine whether your remote workers are contractors or employees.
  • Open a payroll deduction account with the CRA, prior to which you must also obtain a Business Number (BN).
  • Set up the appropriate pension plan depending on which province your business belongs to – Quebec Pension Plan or Canadian Pension Plan.
  • Identify all required payroll deductions and other mandatory benefit contributions.
  • Collect all key information from your employees, especially any mandatory government identification.
  • Ensure that you have created a written and signed a compliant employment agreement with the candidate.
  • Remember that no matter where you’re hiring from, pay your employees in Canadian currency!

How to hire remote workers in Canada: Top 5 things to consider

1. Consider if you’re hiring within Canada or internationally

Since remote work is now the norm, it has opened up unlimited possibilities to hire individuals with specialized skills. For example, if you are looking to hire an expert Cyber Security consultant, but you are unable to find the ideal candidate in your own town/country, you can expand your search globally which has a much larger talent pool. You could also hire someone from within Canada which might make it logistically easier on the hiring process especially regarding employment or tax laws.

2. Decide if you want to hire contractors or employees

The tax implications and laws are quite different for a contractor and an employee, so it would be best to determine if you want to hire the remote worker as a contractor or as an employee. If you are hiring remotely and hiring candidates internationally, it is wiser to hire them as contractors as the laws to hire a remote worker as an employee varies country to country. The red tape that comes with the hiring process would be a potential burden that could impact your costs and flexibility to work remotely.
If you are hiring a remote employee from within Canada, then you may hire them as an employee or a contractor safely. It is cheaper to hire a contractor than an employee since you will not be required to pay regular payroll taxes and other contributions like EI or CPP for contractors. Hiring the remote worker as an employee makes more sense if your role is located in Canada and does not have a defined timeline or an end date for a project.

3. Ensure that the new remote hire accepts the role and signs the job offer

An essential point to note during your hiring process is to ensure that the new employee formally accepts and signs off on the job offer. This is not mandated by the Canadian government, but it’s always better to have everything in writing, especially when it comes to remote hiring. After you have created the written job offer, having the employee read through the details of the role, responsibilities, benefits, salary, work hours, bonus structure or probationary period if applicable avoid any future misunderstandings. Remember that when you are hiring Canadian remote workers, you should structure your job offer as per the employment rules and regulations of the province, especially if you are hiring an employee from a different province.

4. Open a file for the new remote worker

When you hire a remote worker, it is a best practice to begin a new file on them. This will ensure that you have all the relevant information that you need on the remote employee and can avoid issues such as lost information in the future. Ensure that you collate the following information for your official records.

  • Pay stubs
  • Timesheets
  • Performance Evaluations
  • Tax forms related to payroll, benefits etc.

5. Review the Social Insurance Number (SIN) thoroughly

A SIN number is essential for the Government of Canada in order to administer employee benefits. Remember to review your potential remote workers SIN card at least within 3 days of their official start date and then you must record the employee’s name and SIN number exactly as it is shown on the SIN card.

If you see SIN numbers beginning with the number “9”, you should be aware that it belongs to someone who is not a citizen or a permanent resident. This means that the remote worker may only be authorized to work for a specific employer or within a specific period under a valid work authorization issued by the Immigration, Refugees and Citizenship Canada.

Remember to also onboard the remote employee and to ensure that they are set up for success when you hire them. Onboarding is vital to the retention of employees and has become even more critical in this day and age of remote work. Onboarding is critical as it is the only way the remote employees are introduced to the company culture and the team is through their screens at home. Put yourself in the shoes of the new hire and think about how you would want your ideal onboarding experience to feel like and let that guide you through the process.

There are many ways to hire remote employees in Canada and from outside the country, but you should choose a solution that is practical and works for your company. For international employers, hiring remote employees in Canada could be a great way for you to get your foot in the Canadian job market. Canada is home to some amazing talent across the numerous industries we have here, and no matter what your business does, you can count on finding great talent in the Canadian job market.