Learn how to hire your first employee. This guide covers the steps involved in hiring employees, employment and safety regulations and standards for Manitoba, as well as other considerations.
Regulations and Requirements
When hiring an employee, it is important to understand your responsibilities as an employer, including how payroll works. This helps to ensure you are not assessed penalties and interest, or face other consequences.
Canada Revenue Agency (CRA) outlines the steps involved with payroll and also provides information regarding payroll records that you, as an employer, must keep.
- Determining if you are an employer.
- Opening a payroll account with CRA.
- Get your employee's Social Insurance Number (SIN) and completed Form TD1, Personal Tax Credits Return.
- Calculate deductions including Canada Pension Plan (CPP) contributions, employment insurance (EI) premiums, and income tax deductions.
- Remit deductions withheld from your employee's income along with you share of CPP contributions and EI premiums.
- Complete and file year-end information returns such as T4 slips.
Once you have hired an employee, you must determine whether you will perform payroll tasks yourself, use a payroll software or outsource to a payroll service provider. CRA offers a free Payroll Deductions Online Calculator that can be used to calculate payroll deductions.
For more information, CRA offers a video series entitled, "Payroll Information for a New Small Business" that may be helpful.
Canada Revenue Agency
Winnipeg, Manitoba R3C 4T4
Employment Standards is a government program under Manitoba Growth, Enterprise and Trade. The program administers laws on minimum wages, hours of work, holidays and other workplace entitlements and responsibilities.
The Quick Guide to Employment Standards provides information about minimum wage, vacation, overtime, general holidays, ending employment, and more.
Workplace Health and Safety
SAFE Work Manitoba works with their partners, Manitoba Workplace Safety and Health and the Workers Compensation Board of Manitoba to prevent workplace injuries and illnesses through promotion, protection, and education.
Manitoba Workplace Safety and Health
Manitoba Workplace Safety and Health is responsible for the legal aspect of keeping the province's workers safe on the job. They provide information regarding workplace health and safety standards.
Workers Compensation Board of Manitoba
Most businesses in Manitoba that employ workers are required to register for workers compensation coverage through the Workers Compensation Board of Manitoba (WCB).
Workers compensation coverage provides workers with wage loss, vocational rehabilitation, impairment awards and healthcare benefits in the event that they sustain an injury at their place of work.
Owners of a business (sole proprietors, business partners, directors of corporations, or self-employed individuals) are not required to cover themselves with the WCB, but may choose to obtain personal coverage.
Create an employer account with WCB
To create your employer account, you can contact the Assessment Services Department. They can provide information about coverage, classifications, reporting payroll, employer audits and more.
Employment Status: Employee or Self-Employed?
It is important to determine whether a worker is an employee or a self-employed individual. Employment status directly affects a person's entitlement to employment insurance (EI) benefits under the Employment Insurance Act. It can also have an impact on how a worker is treated under other legislation such as the Canada Pension Plan and the Income Tax Act.
- Canada Revenue Agency offers a guide, “เกมส์Employee or Self-Employed?” to help payers, employers, or workers understand a worker’s employment status including factors to consider.
- The MaRS Library offers a sample template of an independent contractor agreement that may be customized and used to ensure that all parties are clear on their responsibilities.
Wage Subsidies, Tax Credits and Grants
Wage subsidies, tax credits and grants provide a financial incentive to eligible employers. Applying for a wage subsidy can offset the costs associated with wages and benefits.
Learn more about wage subsidies, tax credits and grants for employers.
Employee Benefits and Allowances
As an employer you may choose to provide benefits and allowances to your employees such as medical and dental plans, gifts, awards, meals, insurance policies, gym memberships and more. You may have to include the value of a taxable benefit or allowance in an employee's income, depending on the type of benefit or allowance and the reason you give it.
Learn more about taxable benefits and allowances and your responsibility as an employer.
Resources for Hiring and Managing Employees
Service Canada offers a guide to hiring employees that will help you develop comprehensive job descriptions and provides information to help you screen interview, test, and evaluate job applicants.
Service Canada also offers a free online Job Bank that allows you to post your job and access resources to find, hire and retain the workers you need.
Human Resource Management
Workforce Development Program assists companies that require a comprehensive approach to human resource management through needs assessment, analysis and training support.
Manitoba Agriculture offers a manual that provides information about the important parts of an effective HR plan. Although the tool was developed with rural business in mind, it may apply to any small businesses in Manitoba.
MaRS Entrepreneur's Toolkit contains articles, templates, reports, workbooks, reference guides and videos covering a range of topics from employee compensation and benefits to employee orientation and termination.