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 Becoming An EmployerPayroll Deduction Requirements
Payroll deduction requirements are the responsibility of the employer. But first, you should determine whether you are an employer and then understand your responsibilities in an employer-employee relationship. You are generally considered to be an employer if you:
An employer-employee relationship exists if you are in a position to control and direct the person or people who perform the 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 actually self-employed. If you cannot determine whether a person is an employee, you can obtain a ruling from the Source Deductions section, CPP/EI section of your district taxation office. Also see the publication, Employee or Self Employed? on the Canada Revenue Agency website. What are your responsibilities as an employer? As an employer, you have to:
PLEASE 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. You can order an Employer's kit from your District Taxation Office.
Employment StandardsAs an employer, there are a few standards and acts that you should read and become familiar with in order to treat your employees with the professionalism and respect that they deserve. These acts include the Employment Standards Act, the Labour Relations Code and the Human Rights Act. Employment Standards Act Under the Employment Standards Act, a Child Employment Permit is required if the employee is under 15 years of age. A summary guide to the Employment Standards Act is located at: http://www.labour.gov.bc.ca/esb/esaguide/ The Employment Standards Branch operates local offices around the province.
Labour Relations Code The purposes of the Code are to:
Human Rights Act 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.
Workers Compensation ActThe Workers’ Compensation Board (WCB) administers the Workers Compensation Act. The Act provides wage loss compensation, disability pensions and rehabilitation services to workers for work injuries and occupational diseases. It also regulates occupational safety and health conditions in the workplace. Under the Act employers (businesses) are required to provide for the safety and health of their workers, pay Workers' Compensation Board assessments, and comply fully with the rules, regulations and standards in place for the reporting of accidents and injuries to the WCB. In the case of a corporation, all shareholders or officers who are actively engaged in company business are regarded as employees under the Workers Compensation Act. Optional personal coverage is available for sole proprietors and partnerships from the Workers' Compensation Board. Any business which contracts out any part(s) of its business is responsible for ensuring the payment of the WCB assessments by the other contractors and sub-trades. The prime contractor is advised to clearly establish that the sub-contractor carries his/her own coverage (i.e. has registered with the WCB) and record that WCB registration number before the start of the contract. When a subcontractor is not registered with the WCB and the contract under which they are employed is essentially one of providing labour, the subcontractor and anyone they may employ in order to adequately perform the contract, are generally considered to be employees of the prime contractor. For your protection, a subcontractor's coverage should be clearly established prior to commencement of a contract. Under the Occupational Environment Regulations of the Workplace Act, factories, offices and shops are required to meet certain working environment standards pertaining to ventilation, heating, lighting, lunchrooms, etc. For more information, contact:
Apprenticeship ActThis Act regulates businesses or organizations that employ persons in certain trade occupations. This Act also provides for a voluntary system of apprenticeship in a wide variety of other trades. Certification is compulsory in the following industries: plumbing, refrigeration, roofing, sheet metal, sprinkler system, pipe fitting trades, automotive service, automotive collision repair, automotive painting and refinishing, electrician, and power line technician.
The Safety Acts of British ColumbiaThe objective of the Safety Acts of British Columbia is to facilitate and maintain a safe environment for the people of British Columbia within the legislated parameters of the mandate. There are several safety acts of BC that you should be familiar with as an employer. These include: For more information, contact the appropriate branch of the Ministry of Municipal Affairs, Safety Engineering Services Division:
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