--- title: "Hiring Your First Employee in Canada | EverStone" url: https://www.everstonecpa.com/blog/hiring-first-employee-canada-checklist description: "Hiring your first employee: open an RP account, collect TD1 forms and a SIN, register with WorkSafeBC and make the first remittance. Use the checklist." type: guide updated: 2026-10-12 summary: "Hiring a first employee in Canada means opening an RP payroll account under the business number, getting the employee’s SIN and signed TD1 forms before the first pay, withholding CPP, EI and income tax, registering for workers’ compensation coverage, and remitting by the assigned due date." faq_count: 6 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Hiring Your First Employee in Canada: A Checklist Payroll # Hiring your first employee *— the Canadian checklist* By EverStone CPA · Updated August 2026 · 8 min read **Quick answer:** Hiring a first employee in Canada means opening an RP payroll account under the business number, getting the employee’s SIN and signed TD1 forms before the first pay, withholding CPP, EI and income tax, registering for workers’ compensation coverage, and remitting by the assigned due date. Work through these before the first pay run, in this order. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) ## Key takeaways - An RP payroll account is opened under your existing business number before the first pay run. - Collect the SIN and completed federal and provincial TD1 forms before you pay anyone. - In BC, workers’ compensation coverage is registered separately, through WorkSafeBC. - Your remitter type sets your remittance due dates — new small employers are usually quarterly. The first hire changes what your business is, administratively. Money you pay out is no longer just an expense — part of it belongs to the CRA before it ever reaches the employee. Here is the sequence, in the order it actually needs doing. Related: [B.C. statutory holiday pay rules](https://www.everstonecpa.com/blog/statutory-holiday-pay-canada-employers). Related: [WorkSafeBC workers compensation registration: who has to register](https://www.everstonecpa.com/blog/workers-compensation-registration-bc). ## 1. Confirm the person you are hiring is an employee First, decide employee or contractor. Errors cost one way: if the CRA reclassifies a contractor, the business owes the missed deductions, the employer’s share and penalties. See [worker classification](https://www.everstonecpa.com/blog/employee-vs-contractor-cra-worker-classification) and [subcontractor vs employee](https://www.everstonecpa.com/blog/subcontractor-vs-employee-cra); where unclear, the CRA issues rulings. **Hiring your first employee?** We open the payroll account, register WorkSafeBC and run the first pay correctly, as part of payroll on a fixed monthly fee. [Get a payroll quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) ## 2. Open an RP payroll account Payroll runs on the RP program account on your business number; if you already have one for GST/HST or corporate tax, just add it. Open it before the first pay date. Work out your own date with the [payroll remittance calculator](https://www.everstonecpa.com/payroll-remittance-calendar#deadline-checker). ## 3. Get the SIN and the TD1s Two documents before the first cheque: - **The social insurance number.** You need it to report the employee’s earnings. - **Completed TD1 forms — federal and provincial.** The TD1 tells you which personal tax credits the employee is claiming, which is what sets the income tax to withhold. A BC employee completes both the federal TD1 and the TD1BC. New forms are published for each tax year. You also need to determine the employee’s province of employment, since that decides which provincial table and TD1 apply. For remote staff this is a real question, not a formality. ## 4. Withhold the right amounts Withhold income tax, CPP contributions and EI premiums from each pay, then add the employer’s CPP and EI share, a cost of employment. Use the current year’s CRA rates and its Payroll Deductions Online Calculator. Not sure how this applies to you? Every situation is different. Send an enquiry to a CPA and get a straight answer, plus a fixed quote before any work starts. [Send an Enquiry →](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) [See fixed fees](https://www.everstonecpa.com/pricing) ## 5. Know your remittance due date Your **remitter type** sets when the money is due, and it is generally based on your average monthly withholding amount from two calendar years ago. For a first-time employer that number is zero, which normally puts you in the most forgiving category. Payroll remitter types, remitting frequency and due dates by average monthly withholding | Remitter type | Frequency | Due date | | Quarterly — new small employer (monthly withholding $0 to $999.99, perfect compliance record) | Quarterly | April 15, July 15, October 15, January 15 | | Quarterly — small employer (account open 12 months or longer, AMWA $0 to $2,999.99, perfect compliance record) | Quarterly | April 15, July 15, October 15, January 15 | | Regular (AMWA $0 to $24,999.99) | Monthly | 15th day of the following month | | Accelerated — threshold 1 (AMWA $25,000 to $99,999.99) | Up to twice a month | 25th of the same month; 10th of the next month | A due date on a weekend or CRA-recognized holiday moves to the next business day at a Canadian financial institution. With employees but no deductions in a period, report a **nil remittance**. See [payroll remittances and the RP account](https://www.everstonecpa.com/blog/payroll-remittances-canada-rp-account). ## 6. Register for workers’ compensation This one is provincial. In British Columbia, employers register with WorkSafeBC, and premiums depend on your classification unit, not a flat rate. Register when you hire, not when something goes wrong. Other provinces have their own boards and rules. ## 7. Employment standards and the paperwork nobody enjoys Deductions are federal; employment standards are provincial. Minimum wage, overtime, statutory holiday pay, vacation and termination notice come from BC’s Employment Standards Act. Keep a written offer, hours records and reproducible payroll records, and watch the [employer health tax](https://www.everstonecpa.com/blog/bc-employer-health-tax-guide) threshold as you grow. ## 8. Year-end After year end, each employee gets a T4 and the summary goes to the CRA; see [slip filing deadlines](https://www.everstonecpa.com/blog/t4-t4a-t5-slip-filing-deadlines-canada). A departure or interruption of earnings needs a prompt [record of employment](https://www.everstonecpa.com/blog/roe-record-of-employment-canada). Decide at the start whether vacation pay accrues and is paid before vacation or is added to each cheque under a written agreement. Both are allowed in B.C. and book very differently; see [vacation pay rules for employers](https://www.everstonecpa.com/blog/vacation-pay-rules-canada-employers). ## The bottom line Classify correctly, open the RP account, collect the SIN and TD1s before the first pay, remit on schedule, register for provincial coverage and keep records, each against a deadline. It is all part of our [payroll services](https://www.everstonecpa.com/payroll-services-canada). Sources - [Canada Revenue Agency — Payroll](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll.html) - [Canada Revenue Agency — When to remit (payroll due dates)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/remitting-source-deductions/how-when-remit-due-dates.html) - [Canada Revenue Agency — TD1 Personal Tax Credits Returns](https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns.html) - [CRA Guide T4001 — Employers’ Guide to Payroll Deductions and Remittances](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4001/employers-guide-payroll-deductions-remittances.html) - [WorkSafeBC — Do you need coverage?](https://www.worksafebc.com/en/insurance/need-coverage) This article is general information for Canadian business owners and is current as of July 2026. It is not tax, legal or accounting advice, and it does not create a client relationship. Tax rules change and your situation is unique, so please [speak with a CPA](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) before acting on anything here. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form) Once the first payroll runs, the [remittance calculator](https://www.everstonecpa.com/payroll-remittance-calculator) shows when the deductions are due to the CRA. ### Keep reading [Payroll remittances and the RP account →](https://www.everstonecpa.com/blog/payroll-remittances-canada-rp-account) [Record of employment: when it’s required →](https://www.everstonecpa.com/blog/roe-record-of-employment-canada) [Taxable vs non-taxable employee benefits →](https://www.everstonecpa.com/blog/taxable-vs-non-taxable-benefits-canada) [Remittance calendar for a new payroll →](https://www.everstonecpa.com/payroll-remittance-calendar) [First employee: what to set up before payday →](https://www.everstonecpa.com/first-employee)[Choosing an Accountant in Mission BC: What to Ask First →](https://www.everstonecpa.com/blog/choosing-an-accountant-mission-bc) FAQ ## Frequently asked questions **What do I need before I pay my first employee?** An open RP payroll account under your business number, the employee’s social insurance number, and completed federal and provincial TD1 forms. You also need to know the employee’s province of employment, because that determines which provincial deduction table and TD1 apply. **What is an RP account?** The payroll program account on your business number, where source deductions are reported and remitted. With an existing business number, you add the RP account rather than registering again. **When is my first payroll remittance due?** It follows your remitter type, based on average monthly withholding two calendar years ago. A new employer withholding under $1,000 a month with a perfect compliance record usually remits quarterly: April 15, July 15, October 15 and January 15. **Do I have to register with WorkSafeBC?** In British Columbia, workers’ compensation coverage is administered by WorkSafeBC and is separate from your CRA payroll account. Employers register with WorkSafeBC and premiums are based on the classification unit the business falls into. Other provinces have their own boards and requirements. **What if I have employees but made no deductions in a period?** Report a nil remittance by the due date rather than sending nothing, and tell the CRA when you expect deductions to resume. Without a date, the CRA expects remittances for the next month or quarter. **Can I just pay someone as a contractor instead?** Only if they genuinely are one: the CRA looks at substance, not the invoice label. Reclassification makes the business liable for missed deductions, the employer share and penalties, so settle it before the first payment. ## About to make your first hire? Tell us the start date, the pay and the role. A CPA replies by email within one business day with the set-up steps and a fixed fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. For a proper look, a 45-minute **Advice Call** with a Chartered Professional Accountant is $225 plus GST, credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=payroll#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review **Run your own numbers with the free calculators:** [GST/HST calculator](https://www.everstonecpa.com/gst-hst-calculator) · [test whether incorporating pays](https://www.everstonecpa.com/incorporation-calculator) · [verify your payroll deductions](https://www.everstonecpa.com/payroll-deduction-calculator) [← Health Spending Accounts: turning medical costs into a business expense](https://www.everstonecpa.com/blog/health-spending-account-canada-small-business) [Holding companies: when they actually make sense →](https://www.everstonecpa.com/blog/holding-company-canada-when-it-makes-sense) --- Source: https://www.everstonecpa.com/blog/hiring-first-employee-canada-checklist Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online