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Are you a budding entrepreneur in Alberta preparing to hire your first employee? Here are some of essentials you should consider.
Letter of Offer
We recommend that you establish employment conditions with your new employee by providing an offer letter. CFIB Business Counsellors can provide you with a Letter of Offer template which you can customize to your situation. Your new employee should sign the letter, confirming that they understand and accept what your company is offering. The employee should keep the original and you retaining a copy on their employee file.
It is necessary to open an account with Canada Revenue Agency (CRA) for the payroll deductions you must make from your employee's pay cheque. To open an account, you can contact Canada Revenue Agency at 1 800 959-5525 or register online. You must have your employee complete a TD-1 to determine how much income tax to deduct.
There is also the requirement for the Alberta Tax form. You will also need to make other required deductions from your employee's wages, such as income tax, Employment Insurance and Canada Pension Plan . Some of these deductions have an employer's portion that must be paid. CRA has an on-line payroll deductions calculator to help you determine these deductions.
You may need to open an account with Workers’ Compensation and pay premiums on behalf of your employee. These premiums must be paid by the employer and cannot be deducted from the employee's wages. To determine the requirements in Alberta please see the fact sheet produced by the Alberta WCB on "Do I need a WCB account?"
As an employer you will need to familiarize yourself with employment Standards, which are the rules governing an employee's employment with you. They include vacation pay, regular hours, when to pay overtime, breaks, general holidays and more. You can visit the employment standards site of the Government of Alberta Human Services, Employment & Immigration for guidelines. Your Business Counsellor will also be able to answer any questions you may have about Employment Standards.
Occupational Health and Safety
It is important to be aware of Occupational Health & Safety regulations in the workplace. Check for information on Occupational Health & Safety in Alberta for guidelines or requirements or for an overview see our web post. Call your CFIB Counsellor for OH&S policy templates to help your business comply with legislation.