Employment & Staffing Agencies
Accounting built around your workforce.
Staffing and employment agencies operate with unique financial complexity — high-volume payroll, worker classification challenges, HST on placement fees, and multiple client billing arrangements. We specialize in the accounting and tax needs of temp agencies, staffing firms, and employment service providers across the GTA.
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What We Offer
Who Is This For?
Why Choose Synergy
Payroll at Any Scale
Whether you're running payroll for 20 or 2,000 placed workers, we build a system that handles volume accurately and meets every CRA remittance deadline.
Worker Classification Done Right
The employee vs. independent contractor distinction has major tax and legal consequences. We help you structure worker relationships correctly and document them defensibly.
EHT & WSIB Compliance
Ontario's Employer Health Tax and WSIB premiums apply to your payroll — including wages paid through your agency. We calculate, file, and reconcile both programs accurately.
HST on Staffing Fees
Placement fees and management fees charged to client companies are subject to HST. We ensure your invoicing structure is correct and your HST remittances are accurate.
Frequently Asked Questions
Are placed workers considered employees of our agency or the client company?
For payroll and source deduction purposes in Canada, temporary workers placed with client companies are generally considered employees of the staffing agency (not the client). This means your agency is responsible for calculating and remitting CPP, EI, and income tax withholdings. The distinction matters for WSIB as well. We help you structure and document your worker relationships correctly from the start.
Do we charge HST on our placement and staffing fees?
Yes. Placement fees, management fees, and labour supply charges are taxable services subject to Ontario HST at 13%. You charge HST on your invoices to client companies and remit the net amount (HST collected minus your input tax credits) to CRA. We set up your HST accounts and ensure accurate quarterly or annual filing.
What is the Employer Health Tax and does it apply to us?
The Ontario Employer Health Tax (EHT) applies to employers with Ontario payrolls over $1,000,000 (note: the exemption amount may vary — confirm current rates with us). As a staffing agency, your EHT is calculated on the total Ontario remuneration paid to your employees. We calculate your EHT instalments, file your annual return, and ensure you claim any applicable exemptions.
How do we handle payroll for both W2-type employees and contractors?
Your agency may have full employees on your internal team (accountants, recruiters, sales staff) and a large pool of placed workers. Each group has different payroll and tax treatment. We set up separate payroll streams, issue the correct slips (T4 for employees, T4A for contractors over $500), and ensure CRA compliance for both groups.
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