Leading a cross border HR organization comes down to understanding the rules in the operating countries.

Find out how StarGarden helped an organization like yours in our Cross Border Solutions White Paper

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Rules for US-Canada Cross Border Employee Management

Managing cross border workforce means you have to be aware of Cross Border HR rules such as:

Maternity /Paternity leaves:

The United States maternity leave policy as directed by the Family and Medical Leave Act of 1993 (FMLA) mandates 12 weeks of unpaid leave annually for mothers of newborn or newly adopted children. With only some states like California providing new fathers with 6 weeks of paid or partially paid leave. While in Canada, new mothers can take maternity leave for up to 17 weeks and a further 35 weeks is available as parental leave for the 2 parents to split as they choose. All 52 weeks are paid.

Hiring Practices / Human Rights:

The most significant differences between the two countries relate to discrimination based on disability. In Canada, the duty to accommodate disability obligates an employer to accommodate an employee's disability to the point of undue hardship to the employer as a whole, and alcoholism and drug addiction are recognized as disabilities by law that require accommodation. Workplace drug and alcohol testing in Canada is correspondingly restricted. In the United States, alcoholism and drug addiction (in recovery) are recognized as disabilities. Pre-employment drug and alcohol testing is more common in the United States in certain industries

Firing Practices:

Termination of Employment: Canadian employers are required to give employees at least statutory notice of termination or pay in lieu, and may be required to give lengthier notice or pay in lieu as provided under common law or contract. In the United States, employment is generally "at-will" and notice of termination by an employer is required only by contract or company policy.
Severance plans or policies are uncommon in Canada because they do not override rights to statutory or reasonable notice. Severance policies or plans are more common in the United States, where companies generally adopt written severance plans.    

Health and Retirement Benefits:

In Canada, changing post-retirement benefits cannot be done without notice. In the United States, there is more flexibility in making changes to these benefits. Provincial governments in Canada are responsible for health insurance whereas, in the US, health insurance is usually provided by employers.

The solution to Cross-border HR issues | StarGarden - HR software for Canada and US

The solution to handling a cross-border HR organization comes down to understanding the rules in the operating countries and using a flexible easily-accessible HCM system that allows you to manage the different rules and complies with the reporting requirements and regulatory needs of the countries you operate in.

  • Benefits and Deduction Rules already configured: Our system allows you to configure rules for deductions, taxes, and benefits required by different states or provinces in the US and Canada

  • Year-End Tax Forms: StarGarden provides W2, 1095, T4, and T4A form creation and dispatch

  • Reporting: StarGarden has 150+ standard reports and an embedded ad hoc report writer that helps you create the reports you need to remain compliant

  • Keep up-to-date with changing regulations: We regularly schedule training sessions to help your payroll department stay compliant with changing regulatory needs

StarGarden understands cross-border workforce issues and has 30+ years of experience managing their HR needs. Talk to us today to find out how we can help your organization!

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