Creating a small business strategy for hiring employees in Canada is a good idea. It’s more important then ever, in the wake of recent changes to the hiring process guidelines from the Canada Revenue Agency (CRA).
In general, the first step in the hiring process begins with a proper employment listing. A typical job description includes specific employee duties, hours, salary and benefits.
CRA officials also say that a good job description should include information about any "probationary period." CRA tracks both required business numbers and payroll deduction accounts throughout the country. That’s why it’s important to meet their various employment standards for your specific province.
Any business needs to create a proper job description. This requirement helps avoid any current or future misunderstandings. It’s a good idea to have astandard process to advertise job openings and conduct interviews with job candidates.
Hiring in Canada is User-Friendly
The hiring process throughout Canada is both user-friendly and transparent. This is why CRA wants you to document the terms of any employees work in writing.
Their advice is based on years of studying how to hire an employee in Canada the right way.
The right way includes:
1. An employer having a valid business number, and a payroll deductions account. Business owners with questions can call the Canada Revenue Agency at 1-800-959-5525. Business owners can also register for a business number online.
2. A business owner has to check a prospective employee's Social Insurance Number (SIN) within three days of the first workday. The employer must record the number exactly as it is written on the SIN card.
The CRA has issued an advisory for employers to ensure that any new person they hire does not have a SIN that begins with the number 9. They claim that a SIN that starts with the number 9 "is not a Canadian citizen or permanent resident." Thus, this type of employee is only allowed to work for select employers in Canada. If a prospective employee is eligible to work in the country but does not have a SIN, they should be sent to apply for a SIN at a local Service Canada Office.
3. All employers must instruct a new employee to complete a Form TD1, Personal Tax Credits Return. This form states how much tax will be deducted from an employee's paycheck. Also, all new workers must complete the federal and provincial TD1 "if they want more than basic personal amount" to be claimed. Employees who work in Quebec must use both the federal TD1 and provincial Form TP 105.3-V, Source Deductions Return.
This is some of the required paperwork that both the employer and prospective new worker must complete before they can legally be hired and be employed in Canada.
Workplace Safety
The Canadian government is bullish on workplace safety. That's why it's vital to brief new employees about safety, dress code and job expectations.
An orientation session for all new employees helps fill in any gaps about required duties, safety issues and other company requirements.
Overall, it's not difficult to hire an employee the right way in Canada. But it is important that you follow all of the CRA's guidelines. This ensures you don't run into problems down the line.