Tips for Hiring the New Employee

Tips for hiring new employee

For the new business owner it can be quite a task hiring the new employee.   For some it is a matter of seeing what skills an individual possesses and making the decision from there.  What is forgotten is that setting up the employee/employer accounts with the proper government agency is time consuming and demands some attention.

When employees come and go it creates more paperwork.   This is just one consideration to be taken into account during the hiring process.

Plus no matter how skilled an individual is in regards to the job they are going to be hired for, there is always some training involved.  The new worker has to learn to adapt to the new work environment so they may not be as productive in the beginning.   If there is a constant change over in employees it can cause a work disruption.

There are times when employees are being hired on a part basis or perhaps by contract.   Each of these circumstances comes with a set of rules that must be followed in regards to tax and payroll remittance obligations.

You can consider yourself an employee if you are paying an individual for services that demand the payment of wages or salaries, or even if you provide other benefits in return for work done.   These may be taxable benefits like room and board, or even just lodging.

You will need a business number and a payroll deductions account to be put in place before an employee goes to work for you.

Often new business owners feel that if they hire an independent person who works on a contract basis that they are not classed as an employee and this may not always be the case. Your accountant can assist you with this as they know what rules govern these circumstances.

There are some obligations that you must meet once you have decided on who you are going to hire.    You must get their social insurance number, and the employee must fill out the applicable forms like the TD1.

It is a good idea to thoroughly research what standards are in place that you must follow as an employer. There are several different rules that you will need to follow. You need to know what the minimum wage is, and what vacation rules regarding pay are, amongst other things.

Being in a position where you need to hire help is a good place to be in because it means your business is probably growing. Accepting the responsibilities that come with this will ensure that you are complying with all of the appropriate rules and regulations.


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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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