Have you decided to hire your first employee in Manitoba? Congratulations! The change from running the business all on your own to hiring your first employee can be an exciting time. Our list of topics will help ensure you comply with government rules and establish a positive working relationship with your new hire.
Letter of offer
You can establish a strong foundation of employment with a letter of offer, outlining the terms of the employment. Have the new employee sign it to confirm they understand and accept what your company is offering.
CFIB’s sample letter of offer can save time developing an employment agreement. Login to the Member Portal and browse the Resource Library. If you don’t see the template you need, contact a CFIB Business Counsellor at 1-888-234-2232 or [email protected].
If you have any questions about how to adapt the template, or want to review it with someone, contact a CFIB Business Counsellor.
Creating a job description sets employment expectations and can help in performance management of your new hire. Tips and resources are available at Why do job descriptions matter?
CFIB’s job description template is a great place to start. Login to the Member Portal and browse the Resource Library. If you don’t see the template you need, contact a CFIB Business Counsellor at 1-888-234-2232 or [email protected].
- Employee or self-employed contractor status
Is your new hire your employee or a self-employed contractor? It is important to know the rules from the perspective of Canada Revenue Agency (CRA), the Workers’ Compensation Board and the Employment Standards Code. The status determines if you or the new hire is responsible for payroll deductions (eg., EI premiums, CPP contributions), WCB premiums and what aspects of the employment are protected by labour standards.
Open a payroll account with Canada Revenue Agency (CRA) for the source deductions you will deduct from your employee's paycheque. You will remit both the employer- and employee-portions of these deductions to CRA. Call 1-800-959-5525 or register online.
To know how much income tax to deduct, have your employee complete a TD-1 form for both federal and Manitoba personal income taxes. You don’t need to send the forms to CRA; simply keep them on file.
CRA has an online payroll deductions calculator to help know the amounts for Employment Insurance (EI) premiums and Canada Pension Plan (CPP) contributions.
You can also type 'payroll' in the filter on CRA's Business Video Gallery to access details about payroll obligations.
- Workers’ Compensation
You may not have registered with the Workers Compensation Board (WCB) as a sole proprietor. In Manitoba, close to 80% of workplaces must register for workers’ compensation coverage. Unless your type of business is on the list of industries exempt from WCB, as soon as you hire an employee, you must open a WCB account. Review the list of compulsory industries.
You will pay premiums based on the employee’s earnings and can’t deduct premiums from wages. Call 204-954-4505 or 1-855-954-4321, ext. 4505 or register online.
- Employment Standards
Familiarize yourself with employment standards laws that set out hours of work, overtime, vacation, statutory holidays, notice of termination, etc. You need to provide these minimum standards to your new hire. Some employers provide more, but no one can agree to work for less than the minimum rules.
Approximately 90% of Manitoba firms fall under provincial regulations. A great place to start is the Manitoba Employment Standards Branch website.
The other 10% – from the grain industry, air transportation, aircraft operations, highway transportation, communications – adhere to the Canada Labour Code. If your workplace is on the list of federally-regulated workplaces read Part III of the Canada Labour Code and the pamphlets.
- Workplace Health and Safety
There are a variety of rules to follow to provide a safe working environment for your new hire. Even the smallest workplaces in every industry have safety requirements. Learn more at SAFE Work Manitoba. CFIB has information and templates to help you save time and be in compliance. Contact a CFIB Business Counsellor at 1-888-234-2232 or [email protected] for more information.
Along with your on-the-job training, VuBIZ online training through your CFIB membership offers a variety of free courses including “Customer First” about communications, active listening, handling difficult people and “Workplace and Personal Skills” about team meetings, delegating, dealing with conflict, managing stress, etc.
Four certificate courses are available for $69 per person per course. These options provide 20 to 30 hours of training on small business management, health and safety, sales and marketing, and human resources.
CFIB's Business Counsellors are available to help CFIB members with staff planning and complying with government requirements. Contact us at 1-888-234-2232 or [email protected].