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Payroll

Your first employee. The order matters more than the effort.

Quick answer: Quick answer: Everything payroll goes right if it starts before the first paycheque: open the payroll program account, determine what to withhold, pay net, remit withholdings on your remitter schedule, and the T4 at year-end becomes a summary of things done rather than a reconstruction. Every payroll horror story starts with a paycheque that preceded the setup. The pieces: deduction calculator, remittance calendar, and the year’s figures, all sourced.

Your first employee. The order matters more than the effort.: the 5 parts this covers — before the first paycheque; the rhythm after; the mistakes that are cheap to prevent; hiring and payroll; set up before the first paycheque
What this covers, at a glance.

Before the first paycheque

  • Payroll (RP) account on your business number. This is the container everything else reports into.
  • TD1 forms from the employee, federal and BC — they set the credits behind the withholding math.
  • The withholding itself: CPP, EI and income tax per pay — the calculator shows each piece and the employer’s cost on top (CPP matched, EI at the employer multiple).

The rhythm after

Withhold every pay, remit on your remitter type’s schedule — the calendar works yours out, and keep the running record that makes February’s T4 an export instead of an archaeology project. Late remittances carry penalties that scale, which is why the schedule matters more than any single payment.

The mistakes that are cheap to prevent

  • Contractor-until-proven-otherwise. Calling an employee a subcontractor does not make it so — the CRA’s tests decide, and misclassification unwinds expensively, backwards.
  • Paying yourself a salary without the same setup. Your corporation is your employer too — owner salary runs through the identical machinery.
  • Remitting “when there’s time”. The schedule is the obligation; the PIER report is how the CRA notices freestyle.
Book a free consultationEmail us your question

Fastest first step: email what you’re facing to info@everstonecpa.com — reply within one business day, and we book the consult from there.

General information, not tax advice. The document in your hand and its own dates govern.

Common questions about first employee

Can I run the first payroll and register after?+
The obligations attach from the first payment — registration after the fact means the first remittance is already late. The RP account takes minutes to open; open it first. Ask about your case →
What does an employee actually cost beyond the wage?+
The employer’s CPP match and EI multiple on top of gross, plus WorkSafeBC premiums in BC. The deduction calculator shows the per-pay employer cost so the wage conversation is had with the true number. Ask about your case →
Should my first hire be an employee or a contractor?+
That is a facts question, not a preference — control, tools, risk, integration. The CRA’s tests decide it later regardless of what the contract says, so structure the reality you want and paper it honestly. Ask about your case →
Will you set all this up for us?+
Yes — first-payroll setup is a routine fixed-scope engagement: account, TD1s, the calculation, the calendar, and the first months supervised. Email info@everstonecpa.com with your start date and we will work backwards from it. Ask about your case →

Hiring and payroll

Behind on Taxes? It Is More Fixable Than It FeelsUnfiled returns brought current by a CPA: what happens first, what it costs, and why filing late beats waiting. Opening a business bank account what you need and why it mattersWhat a Canadian bank asks for when a corporation opens an account, and why a separate business account matters for liability and for clean bookkeeping. OAS clawback planning: why an owner-manager has more control than most retireesHow the OAS recovery tax works, the income threshold where it starts, how the amount is calculated, and what an incorporated owner can control. First-employee checklistEverything required before the first cheque Employee or contractor?How the CRA decides, and why it matters Payroll remittances and the RP accountOpening the account and the schedule Records of employmentWhen one is required, and by when Payroll hubDeductions, remittances and T4s Payroll servicesRun by a CPA at a fixed fee

Does this apply to your business?

Ask and a Chartered Professional Accountant answers. Free, no meeting attached, and no invoice afterwards.

Answered by a CPA, usually the same business day. Nothing is added to a mailing list.

Set up before the first paycheque

Email your hire date. We reply with the setup list in order, and a fixed quote to do it for you.

Email us — info@everstonecpa.comOr book directly
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