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There are a number of issues you need to investigate when
you hire staff for your business:
It is important, initially, to determine the nature of
your relationship with your staff. Will it be a contractual
or an employment relationship? As an employer, you have
certain responsibilities (for example, collecting and remitting
CPP and EI) that you would not have in a contractor relationship.
The Canada Customs and Revenue Agency (CCRA) guide
entitled
Employee vs Self-Employed outlines the terms and conditions
that must be examined and analyzed to make this decision.
We also suggest consulting a legal professional if your
situation is not clear.
Many businesses are required to register their employees
with the Workplace Safety & Insurance Board and
pay premiums for insurance that covers time lost to injury.
Examine your options at the WSIB
web site.
As an employer, you are required to deduct specified
amounts off of your employee's pay for CPP, EI and Income
Tax. You also need to make contributions on your employees'
behalf for CPP and EI. Please see the Employers' Guide to
Payroll Taxes at the Canada
Customs and Revenue Agency web site.
Also visit CCRA
for a list of Frequently Asked Questions about Payroll
Deductions.
As an employer, you must also ensure that you abide by
all responsibilities listed in the Ontario Employment
Standards Act. The act outlines rights and responsibilities
for both the employer and the employee. Topics covered include
minimum wage, overtime pay, public holidays, pregnancy leave
and vacation pay. Please visit the Ontario
Ministry of Labour web site for further information.
A summary of the preceding issues is available in the Canada-Ontario
Business Service Centre's Employment
Regulations Info-Guide.
You also may want to consider purchasing adequate insurance
to cover employee theft and liability. Contact your insurance
agent for more details.
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