Specialized Employer of Record Services in Ontario
Looking to hire top talent in Ontario without handling payroll, legal compliance, and administrative tasks? You’ve come to the right place. HR Options offers expert employer-of-record services to simplify hiring and manage all HR complexities. Our expert team handles everything from talent acquisition to onboarding.
With years of experience, we simplify the process and ensure full compliance with provincial employment laws. Our intuitive online platform delivers real-time updates and transparent reporting so that you can confidently make informed decisions and grow your business.
You can trust us to handle payroll processing, benefits administration, tax compliance, and all HR-related tasks. Contact us today to build a high-performing team and expand your business in Ontario!
Simplify Workforce Management with Ontario’s Trusted HR Solutions
Hiring employees and managing employment logistics in Ontario can be challenging, but the HR Options team makes it easier. Our employ-of-record specialists handle recruitment, payroll, compliance, and workforce management complexities. Whether you need temporary staff or a long-term workforce, we ensure a smooth and compliant hiring experience. Our HR solutions include:
- On-boarding
- Off-boarding
- Payroll Processing
- Tax compliance
- Wage reporting
- Timesheet collection
- Employee relations & HR support
- Full-service workforce administration
Valuable Benefits for Employees in Ontario
Loyal employees are the backbone of your business success! At HR Options, we create competitive benefits packages to help Ontario businesses attract top talent and keep employees motivated. We collaborate with your company to create a customized package that aligns with your policies and creates a supportive and rewarding workplace for employees. Our benefits plans may include:
- Life Insurance
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Paid Time Off (PTO)
- Long-Term Disability Insurance (LTD)
- Health Savings Accounts (HSA)
- Employee Assistance Programs (EAPs)
- Registered Retirement Savings Plan (RRSP)
Essential Employment Information for Ontario
Looking for reliable employer-of-record services in Ontario? Here’s some essential employment information we think you should know:
What is the Minimum Wage Rate in Ontario?
The general minimum wage rate in Ontario is $17.20 per hour. Students under 18 who work 28 hours a week or less receive a minimum wage of $16.15 per hour. Homeworkers who perform paid work from home earn a higher rate of $18.90 per hour. Ontario adjusts minimum wage rates every year on October 1 to keep up with the cost of living and ensure fair pay for workers.
What is Considered Full-Time Employment in Ontario?
Employees who work 37.5 to 40 hours per week are generally considered full-time. However, Ontario’s Employment Standards Act (ESA) does not provide a strict legal definition of full-time employment. Employers can set their own policies regarding work hours, benefits eligibility, and overtime pay. Therefore, employees should review their workplace policies to understand their rights and benefits.
What is Considered Part-Time Employment in Ontario?
In Ontario, part-time employees work fewer than 30 hours per week. Employers decide whether to offer benefits like health insurance or retirement plans, as the Employment Standards Act (ESA) does not require them for part-time workers. Some businesses provide perks such as flexible schedules or pro-rated benefits to attract and retain employees.
What Are the Overtime Pay Rules in Ontario?
In Ontario, employers must pay overtime at 1.5 times an employee’s regular hourly wage for any hours worked beyond 44 hours a week. The Employment Standards Act (ESA) sets this rule, but certain positions, such as managers and specific professionals, do not qualify for overtime. Some industries follow different overtime rules based on their regulations. Employees should check company policies to ensure they receive proper compensation for extra hours worked.
How Long Does Onboarding Take in Ontario?
In Ontario, the onboarding process usually takes a few days to a few weeks, depending on the employer and industry. Employers must collect necessary documents, set up payroll, and provide training or orientation. Work permit verification and other requirements may extend the process for international employees. Our EOR experts streamline onboarding and ensure compliance with employment laws.
What is the Payroll Cycle in Ontario?
In Ontario, employers must pay employees at least twice a month or every 16 days. Most businesses follow a biweekly or semi-monthly payroll cycle, with common pay dates falling on the 15th and last day of the month or every two weeks.
Are Employers Required to Offer Retirement Savings Plans in Ontario?
Ontario does not require employers to offer retirement savings plans, but many provide (Registered Retirement Savings Plans) RRSPs or pension plans. Federally regulated employers must offer a pension plan or contribute to a PRPP. The government replaced the proposed Ontario Retirement Pension Plan (ORPP) with CPP enhancements. Some regions mandate state-sponsored plans. Employees without workplace retirement plans should consider personal savings options like tax-free savings accounts.
New Hire Paperwork
Requirements for Ontario Employers
When hiring employees in Ontario, employers must collect several key documents to comply with provincial and federal regulations. These forms ensure proper onboarding and legal compliance. Below are the required documents:
Federal Tax Form (TD1)
Employees must complete the federal TD1 form, which determines the amount of income tax to withhold based on personal exemptions and deductions.
Provincial Tax Form (TD1ON)
Employees must also complete the Ontario-specific TD1ON form to calculate the correct amount of provincial income tax deductions.
Employment Contract
This contract outlines job responsibilities, compensation, work hours, termination conditions, and other employment terms.
New Hire Reporting
Employers must register new employees with the Canada Revenue Agency (CRA) by collecting their Social Insurance Number (SIN) and submitting required payroll information.
Direct Deposit Form
Employees provide banking details for payroll processing if the company allows direct deposit.
Confidentiality and Non-compete Agreements
Employers may require these agreements, especially in sensitive information or intellectual property industries.
Employment Taxes in Ontario
Employment taxes and statutory fees affect Ontario employees’ overall payroll. Here’s a clear breakdown of known taxes in this province:
Employer Taxes
| Employment Tax | Tax Percentage |
|---|---|
| Canada Pension Plan (CPP) Contribution | 5.95% (up to the yearly maximum |
| Employment Insurance (EI) Premium | 2.296% (up to the yearly maximum) |
| Employer Health Tax (EHT) | 0.98% to 1.95% |
| Workplace Safety and Insurance Board (WSIB) Premium | Varies by industry (average ~1.30%) |
Employee Taxes
| Tax Type | Tax Percentage |
|---|---|
| Canada Pension Plan (CPP) Contribution | 5.95% (up to the yearly maximum) |
| Employment Insurance (EI) Premium | 1.64% (up to the yearly maximum) |
| Ontario Provincial Income Tax | 5.05% to 13.16% |
| Federal Income Tax | 15% to 33% |
Important Leave Laws in Ontario
| Leaves Title | Law |
|---|---|
| Sick Leave | In Ontario, employees receive up to three unpaid sick days per year under the Employment Standards Act (ESA). Some employers offer additional paid sick leave. |
| Bereavement Leave | Employees can take up to two unpaid days per year for the death of certain family members. |
| Organ Donor Leave | Under the law, employees can take up to 13 weeks of unpaid leave for organ donation, with a possible extension of up to another 13 weeks. |
| Crime-Related Child Disappearance Leave | Parents of a missing child due to a crime can take up to 104 weeks of unpaid leave. |
| Court Attendance/Witness Leave | In Ontario, employees have the right to take unpaid leave to attend court as jurors or witnesses. Employers must grant this leave and cannot penalize the employee. |
| Domestic/Sexual Violence Victims' Leave | Employees facing domestic or sexual violence can take up to 10 days (partly paid) and 15 weeks (unpaid) leave per year. |
| Family Caregiver Leave | Under the family caregiver leave law, employees can take up to 8 weeks of unpaid annual leave to care for a seriously ill family member. |
| Family Medical Leave | Employees can take up to 28 weeks of unpaid leave in a 52-week period to care for a family member. |
| Critical Illness Leave | Employees can take up to 37 weeks (for a critically ill child) or 17 weeks (for a critically ill adult) of unpaid leave. |
| Jury Duty Leave | Employers must allow employees to serve on a jury, but they are not required to pay for missed work hours. |
| Election Leave | Under the Ontario Election Act, employees can take up to three consecutive hours off to vote during elections if their work schedule does not provide enough time. |
| Family Responsibility Leave | Employees can take up to three unpaid days per year for illness, injury, or urgent matters related to family members. |
| Pregnancy Leave | Eligible employees can take up to 17 weeks of unpaid leave during pregnancy. |
| Parental Leave | In Ontario, natural and adoptive parents can take up to 63 weeks of unpaid parental leave. If both parents share the leave, they may access up to 71 weeks. They can take this leave within 78 weeks of the child’s birth or arrival. Employees must give their employer at least four weeks written notice. |
| Personal Emergency Leave (PEL) | All employees can take up to 10 annual personal emergency leave (PEL) days, including two paid days, due to urgent matters or certain emergencies. |
| School Activities Leave | Ontario has no law that mandates leave for school activities, but employers may allow time off. |
| Volunteer Emergency Responder Leave | No specific provincial law requires leave, but some employers may grant time off for volunteer emergency responders. |
Comprehensive Employment Termination Details in Ontario
Probation Period
Ontario employment law does not mandate a probation period. Still, many employers implement a standard probation period that typically lasts three months (90 days). Employers can extend probation beyond 90 days, but employees may then qualify for termination pay if dismissed.
Termination Process
In Ontario, employers can terminate employees without cause but must provide proper notice or severance pay. They cannot fire employees for discriminatory reasons under the Human Rights Code or for exercising workplace rights under the ESA. Employees who face wrongful dismissal can file a claim with the Ministry of Labour or take legal action.
Notice Period
Employees who have worked for at least 13 weeks must give their employer one week's notice when resigning. Those with three months to one year of service must give one week's notice, while those with one to eight years must provide an additional week per year of service, up to a maximum of eight weeks. Though not legally required, most employees give two weeks' notice.
Severance and Final Pay
Severance pay is required for employees with at least five years of service if the employer has a payroll of $2.5 million or more. Severance pay equals one week’s regular pay per year of service, up to a maximum of 26 weeks.
New Hire Reporting
Employers must report all new hires and rehires to the New York Department of Taxation & Finance within 20 days of the employee's start date. This report should include the employee’s full legal name, date of birth, address, start date, and social security number.
Local Requirements
Follow additional paperwork requirements for new hires in Flagstaff.
Which Laws Apply to Your Organization?
Ontario businesses must follow federal and provincial employment laws to ensure compliance and avoid penalties. Employers must understand their obligations under key regulations that protect workers’ rights. Following these laws helps organizations operate legally and maintain fair workplace practices. Here are some of the key regulations that may affect your business:
| Law | Applies To | Description |
|---|---|---|
| Employment Standards Act (ESA) | Most employers | This act establishes minimum wage standards, work hours, overtime, vacation, and termination. |
| Ontario Human Rights Code | All employers | It prohibits workplace discrimination based on race, gender, disability, religion, and other characteristics. |
| Pay Equity Act | Employers with 10+ employees | Under this act, employers must offer equal pay for work of equal value, regardless of gender. |
| Minimum Wage Law | All employers | As of 2025, the general provincial minimum wage is $17.20 per hour, which is adjusted annually. |
| Overtime Pay Law | Most employers | Requires overtime pay of 1.5 times the regular wage for hours worked beyond 44 hours per week. |
| Right to Disconnect Law | Employers with 25+ employees | Companies must establish policies on employees' right to disconnect from work after hours. |
| Employment Insurance (EI) Act | All employers | This act provides temporary financial assistance to unemployed workers. Employers and employees contribute through payroll deductions. |
| Termination and Severance Pay Laws | Employers with 50+ employees (for severance) | Establish rules for notice periods and severance pay and just cause terminations. |
| Family Medical Leave Law | All employers | Allows employees to take up to 28 weeks of unpaid leave to care for a critically ill family member. |
| Pregnancy and Parental Leave Law | All employers | Provides up to 17 weeks of unpaid pregnancy leave and up to 63 weeks of unpaid parental leave. |
| Child Labour Laws | All employers | This law restricts work hours and conditions for workers under 18, with additional protections for those under 16. |
| Ontario Whistleblower Protection Act | All employers | Protects employees from retaliation for reporting illegal activities or workplace violations. |
| Occupational Safety and Health Act (OSHA) | All employers | Ontario requires employers to maintain a safe work environment and prevent workplace hazards. |
| Workplace Safety and Insurance Act (WSIA) | All employers | It provides workplace injury coverage through the Workplace Safety and Insurance Board (WSIB). |
| Workplace Harassment and Violence Prevention | All employers | Requires employers to implement policies and training to prevent harassment and violence in the workplace. |
| Pension Benefits Act | Employers offering pensions | Regulates workplace pension plans and ensures compliance with retirement savings rules. |
| Voting Leave Law | All employers | Allows employees three consecutive hours of paid leave to vote on election day. |
| Domestic or Sexual Violence Leave Law | All employers | Grants up to 10 days of job-protected leave for employees dealing with domestic or sexual violence. |
| Electronic Monitoring Policy | Employers with 25+ employees | Mandates that employers disclose if and how they electronically monitor employees promote transparency in surveillance practices. |
| Ontario Labour Relations Act (OLRA) | All employers | This act governs the relationship between employers and unions, including certification processes, collective bargaining, and dispute resolution. |
Want to Streamline Your Hiring Process?
Speak with our HR specialists for the most reliable employer-of-record services to hire top talent and grow your business.