As a growing business it may seem like an easy answer – just hire everyone as an independent contractor. No payroll account with Canada Revenue Agency (CRA) to remit income taxes, no vacation entitlement, Employment Insurance (EI) premiums or Canada Pension Plan (CPP) contributions and even the Worker’s Compensation insurance burden goes to the contractor. The contractor invoices and the company simply pays during the next cheque run. When the company reorganizes or needs different skills, just not renew or immediately terminate the contract with the contractor. Easy right? Wrong.
Hiring Employee Number 1 - here is what to do
Now that you’ve hired that first new employee in Canada, there are several steps in the actual hiring process you need to complete to be compliant with Canada Revenue Agency, Service Canada, provincial Employment Standards and provincial Workplace Safety and Insurance board. Plus you will want to set them up for success with a welcoming and productive onboarding program. This article digs into how to prepare for the all important employee number one, from payroll accounts to culture setting.