Impact, at a glance
- Up to $75,000 saved in Canadian entity setup costs, including legal, taxation, accounting, and administrative fees
- Hundreds of working hours saved that would have been committed to managing the process internally
- Thousands of dollars saved in upfront salary and setup fees required by Gusto’s competitors
A lot of companies rely on contractors, but in today’s challenging economic climate, many contractors are seeking the stability of full-time employment.
While it’s fairly straightforward for US companies to transition US-based contractors to full-time roles, the process can be far more complex for global contractors.
For Play by Play Studios, that’s where Remote and Gusto came in. Through our employer of record (EOR) partnership, the studio was able to seamlessly convert its Canadian contractors to full-time employees in just minutes, helping it retain the key talent critical to its continued growth.
Introducing Play by Play Studios
Founded by industry veterans, Play by Play Studios is an independent video game developer with its core team based in the US.
Like many in the industry, the studio relies on independent contractors such as engineers, game designers, and artists, many of whom are eager to convert to full-time roles for greater job security. For the studio, transitioning these contractors into employees also offers significant advantages, including better team cohesion, increased loyalty, and long-term commitment to its projects.
We spoke to Scott Probst, CEO and founder of Play by Play Studios, to discover how his team leveraged Gusto and Remote’s EOR solution to navigate this challenge — and seamlessly convert two of its Canada-based contractors into employees.
“Converting an international contractor to a permanent member of staff took literally minutes. We were able to retain a highly valued member of the team, giving us both the security and benefits that a full-time engagement provides.”
The challenge
While many professional developers are turning to contracting due to widespread layoffs and studio closures, the stability of full-time employment remains highly desirable, especially when balancing personal commitments and family responsibilities.
As Scott explains, companies that can provide this employment option are immediately in a stronger position to secure and retain top talent.
“We were contracting with a highly talented and valued engineer based in Canada. We wanted to meet them where they were and provide the commitment, security, and benefits of a permanent position. Gusto and Remote’s EOR solution made that possible.”
The studio had explored various options to establish their Canadian contractor as a permanent employee, but found most solutions to be too complex or resource-intensive. These challenges included:
- The studio didn’t have a Canadian entity: The studio did not have a legal entity in Canada, making direct employment difficult without significant time and financial investment. Just setting up a legal entity in Canada can cost tens of thousands of dollars.
- No in-house HR team: The absence of an HR team meant that all administrative tasks would fall on the co-founders, diverting their focus from developing and releasing the best possible games.
- Limited knowledge of international labor laws: Non-compliance with international labor laws would result in hefty fines, legal penalties, or sanctions, and the co-founders weren’t experts in international law.
- Additional costs to engage tax and legal specialists: Employment contracts and federal and provincial and territorial income tax obligations would have to be outsourced to third parties. Oversight would fall entirely on the co-founders, further straining their time and resources.
- Managing multiple software platforms: The studio was already using Gusto for payroll, and was hesitant to adopt a separate platform to manage its international employees. It needed a solution that integrated seamlessly with its existing systems, where its data and information would not be siloed.
“We reviewed other EOR providers, but these came with a substantial lift in terms of initial setup, ongoing logistics, and price. With the combination of Gusto’s platform and Remote’s EOR infrastructure, it was an easy decision to make: the result is fast, user-friendly, and cost-effective.”
The solution
Since Play by Play Studios already used Gusto for its US payroll, the studio was able to convert its Canadian contractor into a full-time employee in minutes through Gusto’s partnership with Remote, an established EOR provider.
The studio has a dedicated customer success manager at Gusto, and access to a whole team of Canadian employment law, payroll, and taxation experts at Remote, who answer questions promptly and accurately.
Play by Play Studios now benefits from:
- Seamless integration: The studio can now manage all its team members — domestic and international — within Gusto’s platform, streamlining its payroll and HR processes.
- Compliant contract generation and onboarding: All employment contracts are generated via the integration, ensuring compliance with Canadian labor laws and tax regulations. New employees are onboarded by a dedicated Remote specialist, who handles all pre-employment checks and is available to answer any questions.
- Comprehensive benefits: The former contractor now receives the same employee benefits as their US-based colleagues, including statutory benefits compliant with Canadian labor laws, and additional benefits that can be selected through the Gusto and Remote partnership.
- Local expertise: Play by Play Studios has access to Remote’s local Canadian employment law experts, who are available to answer any questions during and after the employee onboarding.
- Enhanced employee security: The contractor now enjoys the security of full-time employment, which is crucial for team cohesion and overall morale.
- Scalability: The studio is now better positioned to convert more international contractors to full-time employees in the future, allowing them to secure top talent from around the world.
- Transparent pricing: There are no hidden fees and full transparency on all costs involved, with a clear breakdown of the total cost of employment for international hires.
For the contractor, the transition was effortless. They were provided with a comprehensive benefits package, giving them peace of mind and enabling them to focus fully on their work.
“Whenever I have a question, I receive an almost immediate response. The value of that can’t be underestimated. It means I can spend more of my time adding value to the business and less time chasing answers. We feel like we’re a very important company to both Gusto and Remote.”
The results
- Up to $75,000 saved in Canadian entity setup costs, including legal, taxation, accounting, and administrative fees
- Hundreds of working hours saved that would have been committed to managing the process internally
- Thousands of dollars saved in upfront salary and setup fees required by Gusto’s competitors
“Being able to bring our contractors on as full-time employees is great for our business and for the individuals, and supports the morale of the whole studio. We’re building something great, and now we can bring people on without worrying about where they live. It’s a win-win.”
The studio has since converted a second contractor to permanent employment and, as Play by Play Studios continues to expand, more conversions are expected.
The conclusion
Play by Play Studios’ experience demonstrates how small businesses can overcome significant HR challenges and grow their teams internationally without the burden of establishing foreign legal entities.
“We have everything we need for domestic and international employment within our existing platform. We know we’re compliant, we can see all HR information together, and all employees are getting the same experience wherever they reside. It’s a huge burden off our plate.”
The solution provided by Gusto and Remote has not only saved the studio time and money, but also empowered them to offer their international employees the same level of security and benefits as their US-based staff.
See how Gusto EOR, powered by Remote, can help transform your business — and get started today.
