Who this guide is for
Founders making their first hire — the genuine employee kind, not a contractor — and wanting to do it properly the first time.
Hiring is a step-change in obligation: you're now responsible for payroll deductions, workplace insurance, and a floor of employment rights set by law. None of it is hard once you see the order. The figures and B.C. rules here are current as of 2026 (B.C.'s minimum wage changed on June 1, 2026); rates and rules change, so confirm the current ones with the CRA, WorkSafeBC, and B.C. Employment Standards.
Hiring is a sequence: confirm, offer, register, onboard, then run payroll.
Confirm the person is really an employee (not a contractor), put a written offer letter in front of them, register a payroll account with the CRA and coverage with WorkSafeBC, collect their day-one paperwork (SIN and TD1 forms), then withhold and remit source deductions every pay period and meet the employment-standards minimums.
The thing to internalize: as an employer you can't pay below minimum wage, skip vacation pay, or ignore termination notice — even with the employee's agreement. Those are legal floors, not negotiating points.
Before you make the offer
Get two things straight first
- Confirm it's actually an employee. If the role has set hours, your direction, your tools, and no other clients, it's employment — and calling it contracting to skip payroll is the misclassification trap (covered in its own guide). Hiring properly starts with naming the relationship correctly.
- Set pay at or above the minimum wage. In B.C., the general minimum wage is $18.25 per hour, effective June 1, 2026 (it rises with inflation every June 1). There's no lower wage for tipped staff, and tips don't count toward it. This applies whether you pay hourly, salary, or commission — earnings must still meet the minimum.
An employee costs more than their pay. On top of wages, you'll pay the employer's share of CPP and EI, WorkSafeBC premiums, and accrued vacation pay — and you'll spend time on payroll admin. Build that into your number before you make an offer, so the hire is sustainable rather than a surprise.
The offer letter
A written offer letter (or employment agreement) protects both sides by setting expectations clearly. At minimum it should cover:
- Role and reporting — title, duties, who they report to.
- Compensation — wage or salary, pay frequency, and any bonus or benefits.
- Start date and hours — full-time or part-time, expected schedule.
- Probation, if any, and what it means.
- Termination — how the relationship can end, written to at least meet employment-standards notice (a clause that tries to give less than the legal minimum is unenforceable).
- Confidentiality / IP terms if relevant to your business.
A poorly drafted termination clause is one of the most expensive mistakes in Canadian employment — if it's unenforceable, an employee may fall back on common-law reasonable notice, which can be far more than the statutory minimum. For your first hire, having an employment lawyer review (or provide) the offer letter is worth it.
Register before the first payday
Two registrations to do before you pay anyone
- Open a payroll (RP) program account with the CRA, under your business number, before your first remittance. This is the account you'll remit CPP, EI, and income tax through. (Setting up your BN and CRA program accounts is covered in the CRA-accounts guide.)
- Register with WorkSafeBC before the worker starts, ideally about 30 days ahead. If you hire and pay workers in B.C. — full-time, part-time, casual, or even some contractors — you're required to register for workers' compensation coverage; WorkSafeBC recommends applying about 30 days before you start the business or hire a worker, to allow processing time. This is separate from CRA payroll and is not optional for B.C. employers with workers.
- Note the B.C. Employer Health Tax (EHT) — you only register and pay if your annual B.C. payroll exceeds the exemption (currently $1 million for most employers, higher for charities and non-profits), so most first-time, single-employee businesses won't owe it yet.
Day-one paperwork
What to collect on the first day
- Social Insurance Number (SIN). You must see it and record it within three days of the employee starting. A SIN beginning with 9 indicates a temporary resident — check that their work permit is valid and covers the job, and note the expiry.
- TD1 forms. Have them complete the federal TD1 and the provincial TD1 (TD1BC) so you withhold the right amount of income tax. Keep these on file; you don't send them to the CRA.
- Banking details for direct deposit, plus their address and an emergency contact.
- Workplace orientation. Walk them through health-and-safety basics and any workplace policies — as an employer you have occupational health-and-safety duties under WorkSafeBC from day one.
Running payroll, pay period after pay period
Each time you pay your employee, you withhold and remit source deductions: their CPP contributions, EI premiums, and income tax. The 2026 employee rates are CPP at 5.95% (with the employer matching) and EI at 1.63% for the employee and 2.28% for the employer, up to each year's maximums — the full figures and thresholds are in the CRA-accounts guide. Then:
- Remit to the CRA on your schedule — a new (regular) remitter generally pays by the 15th of the month after the month you paid wages.
- Pay at least twice a month, within eight days of the end of each pay period (pay periods can't exceed 16 days in B.C.).
- Give a written pay statement each pay day showing hours, wage, deductions, and how pay was calculated.
- Keep records — payroll, hours, and the forms above — in case of a CRA or Employment Standards review.
For your first hire, a payroll software product or an accountant/bookkeeper handling remittances is usually worth it — late or missed remittances carry penalties from the start.
The B.C. employment-standards floor
The Employment Standards Act sets minimums you must meet regardless of what an offer letter says. The key ones:
| Standard | The minimum |
|---|---|
| Minimum wage | $18.25/hour (from June 1, 2026) |
| Overtime | 1.5× after 8 hrs/day & 40 hrs/week; 2× after 12 hrs/day |
| Vacation | 2 weeks + 4% pay after 12 months; 3 weeks + 6% after 5 years |
| Statutory holiday pay | If worked 30 calendar days & earned wages on 15 of the prior 30 |
| Termination notice | 1 week after 3 months, rising to a max of 8 weeks after 8 years |
| Final pay | Within 48 hours if you terminate; within 6 days if they quit |
Common-law reasonable notice on termination can exceed the statutory minimum. Being salaried doesn't by itself exempt someone from overtime. Confirm current rules at gov.bc.ca/employmentstandards.
Vacation pay accrues as wages are earned and can't be wiped out by a "use it or lose it" policy — any earned, unpaid vacation pay must be paid out when employment ends.
Year-end, and when employment ends
- T4 slips. Each year you file a T4 for the employee and give them a copy by the last day of February following the calendar year; if that day falls on a weekend or holiday, the deadline moves to the next business day. For 2025 slips, the due date was March 2, 2026 (February 28, 2026 is a Saturday).
- WorkSafeBC reporting. You'll report payroll and pay premiums quarterly or annually, with an annual payroll report due in early March — separate from your CRA filings.
- Record of Employment (ROE). When the employee stops working or has an interruption in earnings, you must issue an ROE (filed with Service Canada) so they can access EI if eligible. For electronic ROEs, the deadline is generally five calendar days after the end of the pay period in which the interruption of earnings occurs; paper ROEs can have different timing, so check Service Canada's ROE guide.
- Final pay. When employment ends, B.C. requires final wages within 48 hours if you terminate the employee, and within 6 days if the employee quits.
When to get help
A simple split: use a payroll provider or bookkeeper for the recurring mechanics (deductions, remittances, T4s) so you never miss a remittance, and an employment lawyer for the offer letter and anything to do with discipline or termination, where the costly mistakes live. WorkSafeBC and B.C. Employment Standards both have employer help lines worth calling when you're unsure.
Common mistakes to avoid
- Calling an employee a "contractor" to dodge payroll — the relationship decides, and the bill lands on you.
- Forgetting to register for payroll or WorkSafeBC before the first payday.
- Budgeting only the wage — not the employer CPP/EI, WorkSafeBC, and vacation pay on top.
- A weak or missing termination clause — leaving you exposed to common-law notice.
- Missing the 3-day SIN rule or not checking a 9-series SIN's work authorization.
- Late remittances — penalties apply from the first slip.
- Assuming "salaried" means no overtime — only genuinely managerial roles are exempt.
- Not issuing pay statements or keeping payroll records.
Official sources
Hiring spans federal payroll and B.C. workplace law — confirm both, and note rates change.
Payroll — set up, deduct, remit, T4CRA
Opening a payroll account, the SIN and TD1 rules, source deductions, remitting, and year-end slips.
canada.ca/.../businesses/topics/payroll.htmlApply for coverageWorkSafeBC
Who needs coverage, how to register as an employer, and reporting payroll and premiums.
worksafebc.com/en/insurance/apply-for-coverageEmployment StandardsGov. of B.C.
Minimum wage, hours and overtime, vacation, statutory holidays, and termination rules.
www2.gov.bc.ca/.../employment-standards-advice/employment-standardsRecord of Employment (ROE)Service Canada
When and how to issue an ROE when an employee's earnings are interrupted.
canada.ca/.../ei/ei-list/reports/roe-guide.htmlEmployer Health Tax (EHT)Gov. of B.C.
Whether your payroll crosses the exemption, and how to register and pay if it does.
www2.gov.bc.ca/gov/content/taxes/employer-health-taxSave this: the first-hire checklist
Work top to bottom — the order is the point. Tick each before the first payday where it applies.
A note on this guide. This is educational information about hiring in Canada — not legal, tax, or accounting advice, and not a substitute for it. Payroll rates, minimum wage, WorkSafeBC rules, and employment standards differ by jurisdiction and change over time; B.C. figures here reflect rates effective in 2026. Confirm current rules with the CRA, WorkSafeBC, and B.C. Employment Standards, and work with a payroll provider, accountant, and — for offer letters and terminations — an employment lawyer. Last reviewed June 2026.
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