Employer of Record Ontario: A Small Business Guide - HR Insights

Introduction

Running a business in Ontario is exciting — but managing HR, payroll, compliance, and paperwork?
That’s a different story.

If you’re growing your team or hiring across the province, you might already feel the weight of employment laws, WSIB, tax remittances, and complex regulations.
That’s where an Employer of Record (EOR) steps in.
In this guide, we’ll explain what an EOR is, how it works in Ontario, and why small business owners are increasingly choosing Divino Business Solutions to make hiring and compliance effortless.

What Is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party organization that legally employs workers on your behalf.

In simple terms:

You manage the day-to-day work and relationship with your team.
The EOR handles everything legal and administrative: issuing paychecks, remitting taxes, providing statutory benefits, filing ROEs, and ensuring compliance with Ontario labour laws.

This means you get to grow your business and hire great talent — without worrying about getting tangled in HR paperwork or legal risks.

How Does an Employer of Record Work in Ontario?

Here’s how the EOR process works, step-by-step:

You select the candidate you want to hire.
Divino Business Solutions becomes the official employer on paper — taking full responsibility for employment contracts, payroll setup, and benefits registration.
We handle government reporting, WSIB registration, tax deductions (CPP, EI, income tax), and ROE filings.
You manage your employee’s day-to-day tasks, performance, and communication.

Think of it like this:

You’re the boss.
Divino is the HR and compliance partner working quietly behind the scenes.

Why Use an Employer of Record in Ontario?

Choosing an EOR is a smart move for Ontario businesses, especially small and growing companies. Here’s why:

1. Stay Compliant with Ontario Labour Laws

Navigating the Employment Standards Act (ESA), WSIB regulations, payroll taxes, and ROE rules can be overwhelming. An EOR ensures your business stays fully compliant — and avoids costly penalties.

2. Save Time and Money

Setting up your own internal HR department can cost thousands per month. With an EOR, you only pay for the services you need — keeping your overhead low and predictable.

3. Hire Faster

Need to expand your team quickly? An EOR can onboard employees much faster than traditional hiring processes — no need to wait for complicated setup.

4. Focus on Growth, Not Paperwork

Spend less time worrying about forms, registrations, and audits. Spend more time building your business and serving your clients.

Employer of Record vs PEO: What’s the Difference?

Feature	Employer of Record (EOR)	Professional Employer Organization (PEO)
Employment Relationship	EOR is the official employer of record	You and PEO co-employ the worker
Compliance Responsibility	100% managed by EOR	Shared between you and PEO
Best For	Small businesses without HR infrastructure	Larger businesses needing partial HR help
Setup Time	Very fast	Slower, needs more integration

For most small businesses in Ontario, an EOR is faster, simpler, and safer.

How Much Does an Employer of Record Cost in Ontario?

The cost of using an Employer of Record service varies based on:

Number of employees
Complexity of employment needs
Province-specific compliance requirements

Good news for Ontario businesses:
Using an EOR like Divino is often far more affordable than hiring HR staff, managing payroll manually, and risking fines for non-compliance.

We offer customized, competitive pricing for small businesses — book a free consultation to get your quote.

Why Divino Business Solutions Is Your Best EOR Partner in Ontario

At Divino Business Solutions, we specialize in supporting Ontario’s small and growing businesses with stress-free Employer of Record services.

Ontario compliance experts (ESA, WSIB, CRA reporting)
End-to-end HR, payroll, and employment administration
Local knowledge and personalized service
Fast onboarding and support across the province
No hidden fees or complicated contracts

We’re proud to help Ontario entrepreneurs hire confidently — without the complexity.

FAQs About Employer of Record Services

What is an Employer of Record in Ontario?

An Employer of Record (EOR) is a third party that legally employs your workers, handling all HR, payroll, benefits, and compliance obligations under Ontario laws.

How does an Employer of Record help my small business?

An EOR saves you time, reduces costs, keeps you compliant with employment laws, and lets you focus on growing your business instead of managing HR paperwork.

Is using an EOR legal in Ontario?

Yes! Using an Employer of Record is fully legal and compliant in Ontario, as long as the EOR follows all provincial and federal employment standards.

How quickly can I hire someone through Divino’s EOR service?

Very quickly — sometimes within a few days. We handle all the backend paperwork while you focus on choosing the right candidate.

What’s the difference between an EOR and a staffing agency?

A staffing agency typically finds workers for temporary roles. An EOR, like Divino, becomes the legal employer of your chosen hires — for permanent or long-term roles.

Conclusion

Choosing an Employer of Record in Ontario isn’t just about making hiring easier — it’s about protecting your business, saving money, and freeing yourself to grow.

At Divino Business Solutions, we make it simple, fast, and affordable for Ontario’s small businesses to hire without hassle.