Recruitment in Canada

Recruitment in Canada: Frequently Asked Questions

What is the monthly cost of using an Umbrella Company in Canada? 

Our Canadian partner company charge 5.9%.


What is the cost of a Work Permit in Canada?

Between $4,500 - $6,000 CAD. TN visas cost up to $1,000 USD (depending on whether an attorney is used).

How long does it take to get a work permit in Canada?

Between 4-6 weeks, unless the candidate is a US or Mexican passport holder and in that case it’s 2-3 days for the US national and 7 days for Mexican nationals.

What is the estimated net retention in Canada for a contractor earning USD 500 per day?

*update pending

What is the estimated net retention in Canada for a contractor earning USD 1000 per day?

It is state dependent and also depends on whether the candidate is eligible for Living Away from Home Allowance. Can be up to 75% of their gross billing.

Read more about the work permit process.

click here


Recruitment in Canada can be a challenge, but you don’t have to drown in time-consuming admin just to place a candidate. You can simplify complications by using an Umbrella Company (or “contractor management company”), as long as you pick the right one.

Skip ahead to find out how we can help you place candidates faster, or simply read on to find out more about the specific issues you’ll face.

Placing a new contractor in Canada: what are the challenges?


Recruiting in Canada generally requires a lot of complex admin duties, and contractors might end up paying too much in taxes or failing to comply with Canada tax law. It’s important to know what kind of concerns you’ll be facing.

  • Double taxation: Contractors can incur a tax liability in both their home country and in Canada. Many countries have agreements that mitigate this type of issue, but whether or not you can take advantage of them will depend on factors like the length of the contractor’s stay, or the laws of the contractor’s home country. You can learn more about double taxation here (note: this info was written with respect to the UK, but the general concepts will still apply).
  • Withholding tax: If a foreign company is used to provide services overseas, the payments made to that company by the Canada client could be liable for withholding tax under Canada tax law. Find out more about withholding tax.
  • Individual taxation and tax residency: A contractor’s tax liability will often be determined by his or her residency status in their home country and in Canada. Figuring out their tax residency can be difficult and is often tied to the length of their stay in Canada (or out of their home country). Read more about tax residency and individual tax liability here.
  • Permanent establishment: Most double taxation agreements limit the scope of taxation in the host country by providing that a business is only taxable in another state if it has a permanent establishment in that state. A permanent establishment is a fixed base such as a branch, office, factory, workshop, mine or oil well. To find out how to avoid permanent establishment and unnecessary tax liability, read more about the issue.

Work permits

Contractors will need to find a sponsored work permit, which can be difficult and may seriously slow the placement process. Additionally, they’ll need a new permit for each new contract, spawning even more paperwork.

See our FAQ to find out more about the cost and processing time of Canada work permits.

Why use a contractor management company?

An efficient way to manage these problems is to outsource them to a contractor management company. They’ll act as the contractor’s “employer,” handling all of their invoicing, fees, and social security. As Canada tax experts, they also help contractors comply with local tax law while maximising the amount they get to keep.

A quicker, better recruitment process: Working with an Umbrella Company means saving time, effort, and resources. Higher earnings and a smoother transition also make contracting a more attractive opportunity, helping you place candidates more quickly and successfully.

Still, you’ll need to find the right company for you and your candidate.

How to find the right Umbrella Company?

Making sense of the optionsFor free, we match contractors with Umbrella Companies and can help dramatically reduce waiting times. There are numerous Umbrella Companies in Canada and each has its own specialties, services, and payment structures. Choosing the right one is crucial, but it can be difficult when you’re facing a bunch of unfamiliar options.

We’ve developed an extensive database of these companies. We can guide you through your options and help connect you with the best company for you and the contractor.

Get in touch: If you want straightforward, honest advice on recruitment in Canada, we’re easy to contact. Call, e-mail, or chat with us online - for free.

Send your details for more information

Work Permits & Payroll - Frequently Asked Questions


What documentation is required for a Canada work permit?

Copies of: personal page of the candidates passport, education certificates, 2 passport photos, police certificate (country dependent), completed application form, CV.

What is the work permit process in Canada?

For non-Mexican and US nationals: the company sponsoring the candidate on the Canadian Work Permit needs to run an Resident Labor Market Test for 10 days, once completed the application for the candidate can be lodged locally and on approval is sent to the candidate in their home country. The candidate then enters Canada and their permit is ratified on entry.
For Mexican and US nationals the visa is a TN and the sponsoring organization needs a job description, CV, passport copy and education certificates. Once collated the sponsor assigns the candidate to a TN Category and the candidate can have the visa ratified at the port of entry.

Can you transfer from a Business Visa to a Work Permit in Canada?


Can we organise Business Visas in Canada?


How long does it take to process a Business Visa in Canada?

Country dependent 5-7 days.

How much does a Work Permit cost in Canada?

$450 USD. Although citizens of a large number of coutries don’t require Business Visas, they can receive a visa on entry.

Can nationals of certain countries enter Canada without a Business Visa (ex. on an entry visa or visa waiver)?


Yes as above.


$6,000 CAD per month.

What is the monthly cost to run a local payroll in Canada?


Our Canadian partner company charge 5.9%

How does payroll work in Canada?


It's much the same as it does globally. Your employer (the company sponsoring your visa) pays the candidate on a monthly basis. Payroll tax and employer social security contributions are estimated at 4.75% for CPP and 1.78% for Employment Insurance. These compulsory deductions and individual income tax (which ranges from 0 to 29% for federal taxes and 4-24% for provincial taxes) are deducted at source and paid to the Canada tax authorities. Candidates are able to offset their taxable income with relevant business expenses. The World Bank estimates it takes employers in Canada 36 man days to ensure compliance with payroll and labour taxes each year.




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