Hiring model comparisons

A U.S. company hiring in Canada makes two decisions: whether the person should be an employee or a contractor, and whether to employ them through an employer of record or its own Canadian entity. These comparisons answer each decision, then compare Canada with the U.S., the UK, Mexico and India.

An Employer of Record compared side by side with other hiring options

Which comparison answers your question?

Start with the decision in front of you. If you are unsure whether to employ or contract, read the contractor vs employee comparison first, because classification decides everything else. If you will employ, compare an employer of record with your own entity. The market comparisons help only if Canada itself is still in question.

Hiring decisions and where each is answered
Your questionShort answerRead
Employee or contractor? Employee, if you direct the work, set the hours and supply the tools; contractor only for genuinely independent, defined projects.Contractor vs employee in Canada
Employer of record or our own entity? An employer of record for a first hire, a small team or a market test; your own entity once headcount and time horizon justify its fixed overhead.EOR vs Canadian entity
How much less does a Canadian hire cost? Typically 10–40% less than a comparable U.S. hire, counting salary, employer contributions and benefits; typical, not guaranteed.Canada vs U.S. hiring costs
Canada or another market? Canada for U.S. working hours and a familiar legal system; the UK for European reach; Mexico or India where salary cost comes first.UK, Mexico and India comparisons

Choosing a hiring model

Comparing markets and costs

Not sure which model fits?

Describe the role and where your hire lives. We'll tell you which structure fits and what it costs.

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