Hiring Employees. Entrepreneur s Guide To: Main Office 700 California Avenue, Suite 200 Windsor, Ontario N9B 2Z2 T F.

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1 Entrepreneur s Guide To: Hiring Employees Main Office 700 California Avenue, Suite 200 Windsor, Ontario N9B 2Z2 T F Satellite Office 39 Maidstone Avenue East Essex, Ontario N8M 2J4 T F /sbcwindsoressex /sbcwindsoressex

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3 Hiring Employees: Step-by-Step Checklist Note: This is a very general list of instructions and is intended as a guideline. You may access our free consultation service for further clarification on your particular situation. Please contact the WindsorEssex Small Business Centre at the Main Office, , or at the Satellite Office, if you require further assistance. Step #1 Canada Revenue Agency Registration(CRA)/Business Number(BN) Payroll Program Account for Employers: If you have employees you are responsible for calculating, deducting and remitting income tax, employment insurance, and Canada Pension Plan contributions. Employers must register for a Payroll Program Account with CRA before the first remittance date which is the 15 th of the month following the month you became an employer. If you already have a CRA Business Number (HST number, Import/Export number, Corporate Tax number), contact CRA to add a payroll program account. Be sure to have your Business Number handy when you contact them. If you have not previously registered with Canada Revenue Agency, contact them to obtain a Business Number and a Payroll Program Account. a) On-line at b) By telephone at c) By mail: Windsor Tax Services Office, Canada Revenue Agency 185 Ouellette Avenue, Windsor, ON N9A 5S8 d) By fax at If you are unsure whether someone is your employee or if they are self-employed, refer to the CRA Guide RC41190 Employee or Self-Employed? found at Note: Canadian businesses that register for one or more of the following accounts: Corporate Income Tax, Import/Export, Payroll and HST require a Business Number (BN). The BN is a 9-digit registration number that simplifies & streamlines the way businesses deal with the federal government. 2

4 Step #2 Register with Workplace Safety and Insurance Board (WSIB) Most businesses in Ontario must register with WSIB within 10 days of hiring their first worker. Register on-line at Register by phone When you register your business with WSIB - whether you register on-line or on the phone, you will need to refer to the following information: Company information: Mailing address/company address including each operating location Phone and fax numbers Account number of any prior registered accounts with WSIB Legal name of company and trade name(s) Canada Revenue Agency (CRA) Business Number Name, location and phone number for a contact person who deals with payroll records (if different from your primary location) Bank name A description of your business activity A description of the product you produce, the goods you sell or the services you provide (they will use this information to determine your rate group and your premium rate) An indication of your predominant business activity if you have more than one Payroll Information for any other business activities you maintain Names and addresses of any associated employers/contractors, plus their account numbers if possible Your website address, if applicable, and address Owner/executive details: Names, addresses, birthdates and official titles of Directors or owners of the company (and proof of earnings if you will be requesting optional insurance). Information about workers: Dates that workers were first employed The number of workers you employ Payroll information: You will need to estimate the insurable earnings you will pay to workers for the current year. Insurable earnings are usually reported on your workers' pay stubs or T4 slips as gross earnings, including deductions for income tax, CPP and employment insurance. Insurable earnings can also include earnings not reported on a T4 such as room and board, bonuses and commissions. Insurable earnings are subject to a maximum amount for each worker. For 2013, that amount is $83,200. Note: There is a premium calculator on the WSIB website which can be used to estimate what your cost will be. Please visit and use the search box to find Premium Estimator. 3

5 Other Considerations o Hiring an Employee o Payroll Review the Human Rights Code to ensure that the questions you ask during interviews do not contravene the code Obtain the employee s Social Insurance Number Have the employee complete a Federal TD1 form and a Provincial TD1ON form Locate the forms on using Find a Form or Publication Canada Revenue Agency (CRA) website contains a variety of information on payroll including: Payroll Deductions On-line Calculator CRA Guide T4032 Payroll Deductions Tables CRA Guide T4008 Payroll Deductions Supplementary Tables CRA Guide T4127 Payroll Deductions Formulas for Computer Programs Information on manual calculation of deductions Calculate and remit employee deductions: Income Tax Canada Pension Plan (CPP) Employment Insurance (EI) Calculate and remit the employer s matching deductions CPP - Employer contributes an amount equal to the employee amount EI Employer contributes an amount 1.4 times the employee amount The amounts deducted from your employees should be held in trust for the Receiver General in a separate account from your operating business account. Remittances of the employee deductions and the employer s matching amounts must be received by CRA on or before the 15 th of the month following the month that the deductions were made. (ie: deductions made in February, due by March 15 th ). You may have an alternative filing date if you are a quarterly or accelerated remitter. Note: The Canada Revenue Agency website contains all of the information you will need regarding all aspects of payroll including special circumstances. Videos and recorded webinars are also available on the website. 4

6 o Terminating/Severing Employment Provide employee with a Record of Employment (ROE), whether it is a permanent end to employment or simply an interruption to employment Review information on Ministry of Labour website regarding requirements for written notice or pay in lieu of notice, temporary layoff, termination with cause, etc. Issue a T4 (further information below in Tax Information Slips section) o Tax Information Slips Generally, you need to complete a T4 slip if you are an employer and you paid your employees employment income, commissions, taxable allowances and benefits, or any other remuneration You have to complete T4 slips for all individuals who received remuneration from you during the year if: you had to deduct CPP/QPP contributions, EI premiums, PPIP premiums, or income tax from the remuneration; or the remuneration was more than $500. In all instances, you have to file your T4 information return no later than the last day of February following the calendar year to which the information return applies. Complete one copy of the T4 slip for each employee and send them with your T4 Summary You must keep a copy of the T4 slips and the T4 Summary for your files o Legislation to be Aware of: Employment Standards Act : Minimum Wage Hours of Work Equal pay for equal work Vacation and Holiday pay Termination/Severance of Employment Human Rights Code Occupational Health and Safety Act Accessibility for Ontarians with Disabilities Act Note: If you would like to authorize someone other than yourself to be able to contact Canada Revenue Agency on behalf of your business, you can do so either online through the Authorize or manage representatives option on My Business Account or you can advise your CRA tax centre in writing using the form RC59, Business Consent Form. 5

7 Hiring Subsidies o Ontario Works Employer Incentives (Ministry of Community and Social Services - MTCU) Job matching with employer Employer partnership linked with WindsorEssex Economic Development Corporation Pre-employment and on the job training Employment related expenses For further details contact John Marrocco ext or jmarrocco@city.windsor.on.ca o Employment Ontario Employment Services Network (MTCU) Wage incentives Recruitment support For further details contact one of the many Employment Ontario offices in Windsor-Essex. Find local Employment Ontario locations at o Targeted Initiative for Older Workers (MTCU) Training subsidy provided to employers who hire individuals ages 55 to 64 Unemployed Help Centre / City of Windsor o Canada Summer Jobs Service Canada Helps small businesses to create jobs for students during the summer months Application period is December & January Apply online o Summer Jobs Service Program (MTCU) $2.00 per hour per student incentive for eligible employers to create summer job placements for students between age 15 to 30 who are returning to school Note: The list shown above reflects the most commonly used employer incentive programs. Other funding initiatives are available to encourage employment. Refer to the resources page of our website for further information. 6

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