Employment Regulations Guide: Hiring

Employees are the lifeblood of your business, and it is important to know your obligations and opportunities when it comes to hiring people. This guide will help you familiarize yourself with employer regulations in Ontario and the resources that are available for employers.

TABLE OF CONTENTS

1. The Essentials
2. Regulations and Standards
3. Taxes, Contributions and Deductions
4. Tools and Calculators
5. Did You Also Know...
6. Next Steps

1. The Essentials

The following are regulations and requirements that every employer must follow when hiring employees:

• Payroll Account Number
  Under federal law, most employers  are required to collect, remit and report the following payroll deductions:
  • Employment Insurance Premiums
  • Canada Pension Plan
  • Contributions Personal Income Tax
  
  As an employer, you must follow a number of steps for managing your staff payroll, such as opening a payroll account number, getting key information from new employees, calculating and remitting deductions, and keeping proper records.
  
  Contact the Canada Revenue Agency:
  1-800-959-5525
  Opening a payroll account
   
• Workplace Safety and Insurance
  The Workplace Safety and Insurance Board (WSIB) is dedicated to helping you prevent workplace injuries, illnesses and fatalities.
  
  Most employers are required to register with the WSIB within 10 days of hiring an employee.
  
  The benefits of registration include:
  • Help in returning your injured employees to the job
  • Insurance benefits to cover lost earnings as a result of injury
  • No-fault insurance
  • Prevention and training programs
  • Protection from law suits
  
  Contact WSIB:
  1-800-387-5540
  The Workplace Safety and Insurance Board
   
• Employer Health Tax (EHT)
  You must pay EHT if your employees:
  • Work at your permanent establishment in Ontario
  • Are attached to your permanent establishment in Ontario, or
  • Work elsewhere, but are paid through your permanent establishment in Ontario
  
  You could be eligible for an EHT exemption on the first $400,000 of your payroll if you are a private sector employer or an employer that receives funding from any level of government but are not controlled by government.
  
  Eligible associated employers can claim only one $400,000 exemption for the whole associated group.
  
  Contact the Ontario Ministry of Finance:
  1-800-263-7965
  EHT Guide for Employers
   
• Workplace Health and Safety
  Almost every worker, supervisor, employer and workplace in Ontario is covered by occupational health and safety regulations. As an employer in Ontario, you have a number of obligations, including a duty to instruct, inform and supervise your workers to protect their health and safety.
  
  Read Online:
  Guide to the Occupational Health and Safety Act 
  Workplace Health and Safety

2. Regulations and Standards

In addition to “The Essentials,” there are several regulations and standards that will apply to you when you hire employees.

• Employment Standards
  To ensure that employees are treated fairly, the federal and provincial governments have established employment standards. Some of the most common standards that may apply to your business include:
  • Vacation Time and Vacation Pay
  • Pregnancy Leave and Parental Leave
  • Public Holidays
  • Minimum Wage
  • Hours of Work
  • Overtime
  
  Contact the Ontario Ministry of Labour:
  1-800-531-5551
  What You Should Know About The Ontario Employment Standards Act 
  Your Guide to the Employment Standards Act

• Hiring Requirements
  When you hire a new employee, you need to follow government hiring requirements:
  • Ensure that your recruitment and interviewing practices are not discriminatory
  • Create an employee record with basic information on your employee
  • Verify your employee's social insurance number (SIN)
  • Have your employee complete certain tax forms for payroll purposes 
  
  Read Online:
  Hiring Requirements
   
• Social Insurance Number (SIN)
  New employees must produce a SIN card within 3 days of being hired. As an employer, you are obligated to ensure that anyone hired with a SIN beginning with "9" has a valid authorization to work in Canada.
  
  Read Online:
  Employers - What You Need To Know About Social Insurance Numbers (SIN)
   
• Pay Equity
  If you employ ten or more people, your business must pay your male and female employees the same salary for equal or comparable work.
  
  Pay equity was made law to narrow the wage gap that exists between women's and men's wages that was due to the undervaluing of work traditionally done by women.
  
  The law requires the value of jobs usually done by women be compared to the value of jobs usually done by men. Female jobs, which are found to be of equal or comparable value to male jobs, must be paid at least the same.  
  
  Contact the Pay Equity Commission at:
  1-800-387-8813
  Introduction to Pay Equity in Ontario
   
• Workplace Violence and Workplace Harassment
  Your employees should be able to enjoy a workplace that is free of violence and harassment. Resources and information are available to help you ensure that your business provides a safe and healthy working environment for employees.
  
  Contact the Ontario Ministry of Labour:
  1-800-531-5551
  Workplace Violence and Workplace Harassment
  What Employers Need to Know

Employers in Ontario should also be aware of the following regulations that may apply to their business:

• Personal Information Protection - Privacy Commissioner of Canada
  As an employer you are responsible for safeguarding your employees’ personal information. The Privacy Commissioner of Canada’s guide to Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) helps businesses understand their obligations and comply with regulations.
  
  Contact the Privacy Commissioner of Canada:
  1-800-282-1376
  Information for Organizations 
   
• Hiring Self-Employed Contractors
  Before you hire a self-employed contractor, find out if the government considers the relationship to be that of an employer to employee, or of a business to self-employed contractor.
  
  Contact the Canada Revenue Agency:
  1-800-959-5525
  Employee or Self-employed?

If you have legal questions, contact a lawyer who deals with business regulations. The Law Society of Upper Canada's Lawyer Referral Service may be able to assist you in finding a lawyer, based on your needs.

Contact the Law Society of Upper Canada:
1-800-268-8326
Law Society of Upper Canada's Lawyer Referral Service 

3. Taxation, Contributions and Deductions

Once you have successfully recruited employees, you will have reporting requirements for tax purposes and when employees stop working.

• Filing an Information Return (T4)
  An information return is the T4 slip and the T4 Summary form used to report salary, wages, tips or gratuities, bonuses, vacation pay, employment commissions, and all other remuneration employers pay to employees during the year.
  
  Employers must file an annual information return with the Canada Revenue Agency and give information slips to employees. The slips must be provided to employees by the last day of February following the calendar year to which the information return applies.
  
  Contact the Canada Revenue Agency:
  1-800-595-5525
  Employers' Guide - Filing the T4 Slip and Summary Form 2003
   
• Record of Employment (ROE)
  Employers are required to complete an ROE whenever an employee stops working. An ROE must be issued within 5 calendar days of an interruption of earnings (e.g., parental leave, dismissal), or the day the employer becomes aware of the interruption, whichever is later.
  
  Record of Employment on the Web (ROE Web), allows you to create, edit, submit, view and print ROEs for your departing employees. By managing your ROE needs online you no longer need to order, store or mail in paper copies of ROEs.
  
  Use Online:
  ROE Web
  
  For more information or to order paper copies of the ROE, speak with Service Canada directly.
  
  Contact Service Canada:
  1-800-263-8364
  Employment Insurance (EI) guide - how to complete the Record of Employment (ROE) Form

4. Tools and Calculators

There are a variety of online tools and calculators that you can use to help employers in Ontario manage and understand their responsibilities.

• Complying with the Employment Standards Act (ESA): A Workbook for Employers
  This online workbook for employers can help you understand your obligations and rights as an employer in Ontario.
  
  Read Online:
  Complying with the Employment Standards Act (ESA): A Workbook for Employers 
   
• Steps to Hire Temporary Foreign Workers
  If you are considering hiring a temporary foreign worker, there are requirements that you may need to meet.
  
  Read online:
  Steps to Hire Temporary Foreign Workers 
   
• The Industrial Accident Prevention Association (IAPA)
  The IAPA offers a free online questionnaire to help you learn about your legal responsibilities as an employer, and make your business compliant with health and safety legislation. The questionnaire covers topics ranging from providing first aid, reporting illness and injury, and appointing health and safety representatives to dealing with hazardous materials and equipment in the workplace.
  
  Use Online:
  IAPA Legislative Compliance Questionnaire 
   
• Health and Safety Tools
  To ensure that people in the workplace stay safe, the Ministry of Labour has created tools to help identify hazards in various sectors.
  
  Use Online:
  Health and Safety Tools
   
• Public Holiday Pay Calculator
  This online tool can help you calculate how much you will need to pay your employees for holidays, based on Ontario’s nine public holidays.
  
  Use Online:
  Public Holiday Pay Calculator
   
• Developing Workplace Violence and Harassment Policies and Programs: A Toolbox
  Find information, tools, and assessments to help you develop a workplace violence policy and program, a workplace harassment policy and program, or a domestic violence program.
  
  Use Online:
  Developing Workplace Violence and Harassment Policies and Programs: A Toolbox 
   
• Multimedia and Recruitment Tools
  Employers can use these online resources to recruit and hire new Canadians for their business.
  
  Use Online:
  Multimedia and Recruitment Tools
   
• Payroll Deductions Online Calculator
  The Payroll Deductions Online Calculator (PDOC) calculates payroll deductions for all provinces (except for Quebec), and territories based on the information you provide.
  
  Use Online:
  Payroll Deductions Online Calculator

5. Did You Also Know...

Canada Business can help you find information on managing relationships with your employees, and learn about your ongoing responsibilities regarding things like payroll, pension, taxes, compensation, health and safety.

Read Online:
Managing Employees

Office of the Employer Adviser (OEA)
The Ontario Office of the Employer Adviser (OEA) can offer you free expert and confidential advice and training on workplace safety and insurance issues in your business.

OEA can also help you:

• Resolve injury and insurance disputes early
• Get injured workers back on the job
• Share best practices of other successful employers

If you are an employer with less than 100 employees, OEA can represent and intervene on your behalf at the Workplace Safety and Insurance Board and Workplace Safety and Insurance Appeals Tribunal.

Contact OEA:
1-800-387-0774
Office of the Employer Adviser

6. Next Steps

For additional information on hiring, or managing staff, you can also read the following Canada Business Guides.

• Keeping Employee Records
• Managing Employees During Tough Times
• Departing Employees

Additional resources that may help employers include:

• The Ontario Workplace Gateway
  Employers, workers and others can get one-stop access to information and services on a wide variety of workplace-related topics.
  
  Read Online:
  The Ontario Workplace Gateway
   
• Human Resources and Skills Development – Labour Program
  Learn about labour market information and take advantage of the labour resources provided by the Ministry of Labour.
  
  Read Online:
  Human Resources and Skills Development – Labour Program

You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us through the Business Info Line at 1-888-745-8888.

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.