4 Things the Law Requires of an Employer in Canada

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When you own a business in Canada, you have to also have awareness of many laws that help to regulate industry. Among these laws, employment regulations are very important because it not only affects the health of your company but also the specific rights of the people you will hire to help you run that company.

While you do not need to know these MyLawyer.ca laws entirely inside and out, it helps to have at least some awareness of them so that you are not, at least, inadvertently in violation of a simple law that would have been easily avoided or prevented.

Here are a few requirements and regulations you must follow as an employer in Canada:

PAYROLL

It is required by federal law that all employers collect and remit and report payroll and payroll deductions for their employees:

  • Employment Insurance premiums
  • Canada pension plan
  • Personal Income Tax contributions

There are several steps to follow for managing staff payroll. This can include things like:

  • opening payroll account numbers with your bank
  • acquiring key information from your new staff
  • calculating and paying deductions
  • keeping accurate, long term records

SAFETY AND INSURANCE

Most employers in Canada are also required to register staff with the WSIB (Workplace Safety and Insurance Board) within 10 days of hiring any employee.  The WSIB is committed to helping employers reduce the likelihood of workplace injuries, illnesses, and fatalities.

WSIB registration benefits include:

  • assistance in the returning of any injured employee back to work
  • insurance benefits that can help to cover the cost of lost earnings as a result of that injury
  • no-fault liability insurance
  • accident prevention and safety training programs
  • law suit protection

EMPLOYER HEALTH TAX

Employers must also Employer Health Tax (EHT) to all employees who meet the following criteria:

  • are employed at your permanent establishment
  • are attached to this permanent address
  • work at another address but are paid through the financial department of your permanent address

Now, as an employer you should also be aware that you might be eligible for EHT exemption on the first $45,000 of your entire payroll, but only if you are an employer within the private sector or an employer who receives major funding from any level of government (but is not controlled by the government).

WORKPLACE SAFETY AND HEALT

Finally, all employers should know their workplace is covered by various occupational health and safety regulations.  Your obligation as an employer, then, is to instruct, inform, and supervise employees, in order to improve safety and reduce risk.