You’ve survived the hiring process and chosen a candidate – but what happens now? As an employer, you have certain obligations to meet when it comes to government rules and regulations.
You will need to open a payroll account with the Canada Revenue Agency (CRA) in order to remit payroll deductions from your employee’s paycheque (income tax, Employment Insurance, Canada Pension Plan). To open an account, contact the CRA at 1-800-959-5525 or register your business online.
Your employee will need to complete a Federal TD-1 form and a provincial form so you know how much income tax to deduct. Do not send the TD-1 forms to the CRA; they are for your records only. Employment Insurance (EI) and Canada Pension Plan (CPP) have employer portions that must be remitted as well as the employee portion.
The CRA has an online payroll deductions calculator to help you determine the employee’s deductions and an Employer’s Guide to Payroll Deductions and Remittances which you may find useful.
Social Insurance Number
It is your responsibility to request an employee’s social insurance number within three days of the employee starting work. The employee must present a SIN card, a Confirmation of SIN letter or other documentation showing the SIN.
Please note: SINs beginning with “9” are issued to temporary foreign workers who are neither Canadian citizens nor permanent residents. These SINs are valid only as long as the foreign worker is authorized to work in Canada. If an employee has a SIN starting with “9” you must request to see a copy of their immigration document authorizing them to work in Canada. If the document has expired, you must ask the employee to contact Immigration, Refugees and Citizenship Canada (IRCC) to obtain a valid document before hiring them.
Depending on your province, business structure, and industry, you may be required to register for worker’s compensation. Worker’s compensation protects employees from the financial hardships associated with workplace injuries and illness and is funded through employer-paid premiums. For more information, please visit our information on worker’s compensation:
Employment Standards, also known as Labour Standards, are the provincial rules governing an employee’s employment with you. These rules are the minimum standards for vacation pay, regular hours, overtime, breaks, statutory holidays, leave, and more. Visit your provincial page for more information on Employment/Labour Standards:
Newfoundland and Labrador
- Hours of Work in Newfoundland and Labrador
- Paying employees for public holidays
- Providing paid and unpaid leave from work in Newfoundland and Labrador
- Hours of Work in Nova Scotia
- Understanding Statutory Holiday Pay in Nova Scotia
- Providing paid and unpaid leave from work in Nova Scotia
- Hours of work in New Brunswick
- Statutory Holidays: Two ways to pay in New Brunswick
- Providing paid and unpaid leave from work in New Brunswick
Prince Edward Island
- Hours of work in Prince Edward Island
- Public holidays in PEI and how to pay your employees
- PEI leaves of absence: paid and unpaid
Occupational Health and Safety
Regardless of your business size, once you have employees you have requirements to meet Occupational Health and Safety regulations. As an employer, you have a duty to ensure that the workplace is a safe environment and that employees have the knowledge and training they need to work safely.