Hiring Employees in Canada: Employer Setup and Onboarding Checklist
Whether you’re a US company hiring employees in Canada or a Canadian employer expanding into a new province, there are two things you need to get right:
- Set up your business to employ Canadian workers legally.
- Collect the right information and documentation when employees are hired.
The checklist below covers both.
Set up your business for hiring Canadian employees
| Item | Legally Required? | Comments |
|---|---|---|
| Register your business in the province (if applicable) | Depends | Some employers must register extra-provincially before carrying on business in another province. Requirements vary by jurisdiction. |
| Obtain a CRA Business Number (BN) | Yes | Required before opening payroll accounts. |
| Open a CRA Payroll Account | Yes | Required before paying employees. Used to remit income tax deductions, CPP contributions, and EI premiums to CRA. |
| Set up payroll | Yes | Payroll must be configured to calculate and remit income tax, CPP, EI, vacation pay, and other required deductions. |
| Register for Workers’ Compensation | Usually | Requirements vary by province and industry. Most employers are required to register with the applicable workers’ compensation authority. |
| Prepare Employment Agreements Templates | No | Strongly recommended for protecting business interests and significantly limiting termination notices. See Orientation Checklist below. |
| Create an Employee Handbook | No | Strongly recommended for protecting business interests. |
| Implement Required Workplace Policies | Depends | Policy requirements vary by province and may include workplace harassment, violence prevention, accessibility, health and safety, electronic monitoring, right to disconnect, and other mandatory policies. |
| Establish Health and Safety Programs | Usually | Requirements vary by province, workplace size, and industry. |
| Arrange Employee Benefits (if offered) | No | Applicable only if benefits are offered. |
| Establish Employee Recordkeeping Processes | Yes | Employers must maintain employment records required under applicable employment standards legislation. |
Onboarding new employees
| Item | Legally Required? | Collect Before Employment Starts? | Comments |
| Employment Agreement | No | Yes | Although employment agreements are not legally required, not having one can be extremely expensive. Without a properly drafted agreement, employers lose the ability to limit termination entitlements and enforce other important protections such as probation periods, confidentiality obligations, intellectual property ownership, and temporary layoff rights. Employment agreements should generally be signed before employment begins. Attempting to introduce these protections after employment starts may require fresh consideration and can create enforceability issues. |
| Ask “Are you legally entitled to work in Canada?” | No | Yes | Recommended screening question during recruitment. |
| Criminal Record Check (if applicable) | No | Yes | Only where reasonably connected to the position and with the candidate’s informed consent. |
| Federal TD1 | No | No | Typically collected during onboarding after offer acceptance. |
| Provincial TD1 | No | No | Typically collected during onboarding after offer acceptance. |
| Social Insurance Number (SIN) | Yes | No | Do not collect during recruitment. Employers must make a reasonable effort to obtain the SIN within 3 days of employment commencing. |
| Direct Deposit Information / Void Cheque | No | No | Typically collected during onboarding. |
| Employee Information Form | No* | No | *The form itself is not legally required, but employers must maintain certain employee records, including legal name and address. |
| Emergency Contact Form | No | No | Best practice. |
| Employee Handbook & Policies Acknowledgement | No | No | Best practice for protection of the business. |
| Benefits Enrolment Forms | No | No | Applicable only if benefits are offered. |
| Copy of Work Permit (if applicable) | No | No | Typically collected when the employee is working under a temporary work authorization. |
Final checklist
Before your first employee starts work, confirm that you have:
☐ CRA Business Number
☐ CRA Payroll Account
☐ Payroll system configured
☐ Workers’ compensation registration completed
☐ Employment agreement prepared
☐ Employee handbook and workplace policies in place
☐ Health and safety requirements addressed
☐ Employee onboarding package prepared
☐ Required employee recordkeeping process established
☐ Province-specific employment standards reviewed
We help reduce the load.
Practical. Cost-effective. 100% Canadian.
We’ll create your HR foundation with HR Essentials.
Since 2006, more than 10,000 Canadian employers have trusted ConnectsUs HR for HR tools, resources, and support. HR services are now delivered through Sienna HR.
Same team. Same service. Same standards.
Every HR service engagement includes a complimentary 1-year HR Toolkit subscription (a $700 value).
