Becoming an Employer

• Payroll Deductions Requirements
• Employment Standards
• Workers' Compensation and Workplace Safety

The following information is intended to act as general guidelines. The general responsibilities of employers, as well as the legislation employers should be familiar with, are included. However, it is important to note that this is merely a guideline.

Payroll Deductions Requirements

You are generally considered to be an employer if:

• you pay a salary, wages (including advances), bonuses, vacation pay, or tips to your employees
• you provide certain benefits such as board and lodging to your employees.

An employer-employee relationship exists if you are in a position to control and direct the person or people who perform services. Although a written contract might expressly indicate that an individual is self-employed, Canada Revenue Agency might not necessarily consider the individual as such. You must examine the written contract and the working conditions to determine if the individual is self-employed.

If you cannot determine whether a person is an employee, you can obtain a ruling from the Trust Accounts Division of Canada Revenue Agency, or Specific Regulations - Québec.

What are your responsibilities as an Employer?

As an employer, you have to :

• ensure that you have a Business Number which identifies the four major Canada Revenue Agency business accounts:
  • Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return 
  • Importer/Exporter Account Number
  • Trust Accounts Division
  • Goods and Services Tax and Harmonized Sales Tax - GST/HST
• deduct income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from amounts you pay to your employees
• send in these amounts along with your share of CPP contributions and EI premiums that you have to pay throughout the year on your employees' behalf
• get a social insurance number from each employee
• report all these amounts on an information return by the end of February of the following calendar year.

NOTE: As an employer or payer, you hold payroll deductions in trust for the Receiver General. Therefore, you have to keep these amounts separate from the operating funds of your business. They must not be part of an estate in liquidation, assignment, receivership or bankruptcy.

For information on Canada Revenue Agency's personalized visits to new employers, see document  New Employer Visits.

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Employment Standards

Employment Standards

For information on employment standards for industries regulated by either the federal or provincial government, please click on the appropriate link.

Federal -  HR for Employers
Yukon -  Employment Standards
Northwest Territories - Labour Standards Act
Nunavut -  HR for Employers
British Columbia -  HR for Employers
Alberta -  Employment Standards
Saskatchewan -  HR for Employers
Manitoba -  HR for Employers
Ontario -  Employment Regulations Info-Guide
Quebec -  HR for Employers
New Brunswick -  PSETL-Employment Standards
Nova Scotia -  HR for Employers
Prince Edward Island -  Employment Standards
Newfoundland and Labrador -  HR for Employers

Yukon Contact:
Labour Services Office
Main Floor Tutshi Building
2131-2nd Avenue
Whitehorse, Yukon
Y1A 1C3

Labour Relations

For information on industrial relations for industries regulated by the federal government, see document  Industrial Relations in Canada.

Canadian Human Rights Act

This Act forbids discrimination in a number of employment-related areas including employment advertisements, hiring practices and wages. Employers are prohibited from discriminating against employees or prospective employees on the grounds of race, colour, ancestry, place of origin, political belief, religion, marital status, family status, physical or mental disability, sex, sexual orientation, age, or a prior unrelated conviction of such person.

For further information on equal pay, see document  Equal Pay Program - EPP.

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Worker's Compensation and Workplace Safety

For information on workers' compensation and workplace safety for industries regulated by either the federal or provincial government, please click on the appropriate link.

Federal - http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/lp/lo/fwcs/boards.shtml&hs=fxf
Yukon - http://www.wcb.yk.ca
Northwest Territories - http://www.wcb.nt.ca
Nunavut - http://www.wcb.nt.ca
British Columbia - http://www.worksafebc.com  
Alberta - Workers' Compensation Board (WCB) - Alberta
Saskatchewan -  Injury And Safety Informational Services
Manitoba - http://www.wcb.mb.ca
Ontario -  ARCHIVE - Employer's Introduction to Workplace Safety and Insurance
Quebec - http://www.csst.qc.ca/portail/fr/
New Brunswick - http://www.whscc.nb.ca
Nova Scotia - Workers' Compensation Board
Prince Edward Island - http://www.wcb.pe.ca
Newfoundland and Labrador - http://www.whscc.nf.ca

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