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Need to hire a new employee? Follow these simple steps

November 15, 2019   ·   0 Comments

When a business owner needs to hire employees, it’s a good sign that the business is growing. With growth comes added responsibilities under federal and provincial workforce regulations and employers must take steps to ensure they are compliant.  

A number of programs are available that can assist with the hiring process and provide wage subsidies for employers. The Georgian College Centre for Career & Employment Community Services provides guidance and incentives for employers including wage subsidies, training grants, and job matching services. Learn more about these services at www.georgiancollege.ca. The Coalition for Persons with Disabilities provides wage subsidies to employers who are hiring qualified participants of the coalition program. The coalition can be accessed online at www.disabilityaccess.org.  A comprehensive list of hiring incentive programs including summer student subsidies, apprenticeship tax credits and more can be found by visiting www.canada.ca/en/services/business.html

Additional hiring considerations include payroll, social insurance number documentation, worker health and safety, pay equity, and privacy.

Obtain a payroll account number 

Employers need to collect, remit and report Employment Insurance Premiums (EI), Canada Pension Plan Contributions (CPP) and Personal Income Tax for each employee. To process these reporting requirements, the employer must open a payroll account number with the Canada Revenue Agency (CRA), obtain key information from new employees, calculate and remit deductions, and keep proper records. Information on opening a payroll account can be found at www.canada.ca or by calling 1-800-959-5525. 

Social Insurance Number (SIN)

New employees are required to provide their SIN within three days of being hired. Employers need to ensure that the SIN is valid because it’s used to administer government programs including CPP, EI and Income Tax returns. Employers are also obligated to ensure that anyone hired with a SIN beginning with “9” is authorized to work in Canada. For questions about an employee’s SIN, contact Service Canada at 1-800-206-7218.  

Workplace Safety and 

Insurance Board (WSIB)

WSIB is in place to protect injured workers, provide replacement income and help employees return to the job. WSIB also protects employers by providing no-fault insurance, prevention and training programs, and protection from lawsuits.  Most employers must register with WSIB within 10 days of hiring an employee. Information on WSIB can be found at www.wsib.ca or by calling 1-800-387-0750.

Workplace health and safety and the Employment Standards Act 

Ontario workers are protected by occupational health and safety regulations and employers have a duty to inform, instruct and supervise workers to protect their health and safety. Employers must also adhere to the provincial Employment Standards Act (ESA) as legislated by the Ontario Ministry of Labour. Common standards include vacation time, vacation pay, pregnancy/parental leave, public holidays, minimum wage, hours of work, overtime, and more. The Ministry of Labour can be reached at 1-800-531-5551. 

Hiring self-employed contractors versus employees 

For business owners who decide to hire a self-employed contractor instead of an employee it is important to ensure the worker is classified correctly. Unlike independent contractors, employees are protected under the ESA. In the case of an employee, the business decides what the worker will do, how much he/she will be paid, and where and when the work will be performed. The business also provides the equipment or materials for an employee. An independent contractor on the other hand, is in business for him or herself. The contractor determines how, when or where the work will be performed and whether to subcontract to a third party. If unsure if a worker is classified as an employee or a contractor, call the Ministry of Labour’s Employment Standards Information Centre at 1-800-531-5551.

Workplace violence and 

workplace harassment 

Employers are responsible for providing a safe and harassment-free workplace. The Ministry of Labour distributes resources such as workplace policies and guidelines to help ensure the business is meeting its obligations.  Helpful tools can be found at www.labour.gov.on.ca. 

Pay Equity and Employee Privacy 

Pay equity requires employers with 10 or more staff members to pay male and female workers the same salary for equal or comparable work. Questions about this can be directed to the Pay Equity Commission at 1-800-387-8813. Employers must also adhere to the Personal Information Protection and Electronic Documents Act (PIPEDA) which protects workers’ personal information. PIPIDA is overseen by the Privacy Commissioner of Canada which can be reached at 1-800-282-1376.

To find out more about employer obligations and responsibilities, attend the ESA Seminar in Orangeville on December 5, 1-3 p.m. A representative of the Ministry of Labour will explain the Act and answer employers’ and employees’ questions. To register for this free event visit www.orangevillebusiness/events or contact the SBEC office at 519-941-0440 Ext. 2286.

Ellen Sinclair is the Co-ordinator of the Orangeville & Area Small Business Enterprise Centre. She can be reached at esinclair@orangeville.ca or 519-941-0440 Ext. 2270. To sign up for notifications of SBEC programs and events visit www.orangevillebusiness.ca/subscribe.

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