It is important to know your obligations and opportunities when you hire people. This guide will help you to familiarize yourself with employer regulations in Ontario and the resources that are available for employers.
Table of contents
The essentials
Regulations and standards
Reporting requirements
Tools and calculators
Other resources
The essentials
The following are regulations and requirements that every employer must follow when hiring employees:
Payroll account number
Under federal law, most employers are required to collect, remit and report the following payroll deductions:
- Employment Insurance (EI) premiums
- Canada Pension Plan (CPP) contributions
- Personal income tax
As an employer, you must follow a number of steps for managing your staff payroll, such as opening a payroll account number, getting key information from new employees, calculating and remitting deductions and keeping proper records.
Contact the Canada Revenue Agency (CRA):
1-800-959-5525
Open or manage a payroll account
Workplace Safety and Insurance Board
The Workplace Safety and Insurance Board (WSIB) is dedicated to helping you prevent workplace injuries, illnesses and fatalities.
Most employers are required to register with the WSIB within 10 days of hiring an employee.
The benefits of registration include:
- help in returning your injured employees to the job
- insurance benefits to cover lost earnings as a result of injury
- no-fault insurance
- prevention and training programs
- protection from lawsuits
Contact WSIB:
1-800-387-0750
Workplace Safety and Insurance Board
Employer Health Tax (EHT)
You must pay EHT if your employees:
- work at your permanent establishment in Ontario
- are attached to your permanent establishment in Ontario, or
- work elsewhere, but are paid through your permanent establishment in Ontario
You could be eligible for an EHT exemption on the first $1 million of your payroll if you are a private sector employer or an employer that receives funding from any level of government but is not controlled by government.
Eligible associated employers can claim only one $1 million exemption for the whole associated group.
If you are a private sector employer (including a member of an associated group of employers) with total Ontario earnings of over $5 million, you are not eligible for the exemption.
Contact the Ministry of Finance:
1-866-668-8297
Employer Health Tax
Workplace health and safety
Almost every worker, supervisor, employer and workplace in Ontario is covered by occupational health and safety regulations. As an employer in Ontario, you have a number of obligations, including a duty to instruct, inform and supervise your workers to protect their health and safety.
Read online:
Guide to the Occupational Health and Safety Act
Regulations and standards
In addition to “the essentials,” there are several regulations and standards that apply to you when you hire employees.
Employment standards
To ensure that employees are treated fairly, the federal and provincial governments have established employment standards. Some of the most common standards that may apply to your business include:
- vacation time and vacation pay
- pregnancy leave and parental leave
- public holidays
- minimum wage
- hours of work
- overtime pay
- minimum working age
Contact the Ontario Ministry of Labour, Immigration, Training and Skills Development:
1-800-531-5551
Posters required in the workplace
Your guide to the Employment Standards Act
Written policy on disconnecting from work
If you have 25 or more employees in your business, you need to have a written policy that says when and how your employees can disconnect from the workplace. Find out more about who you should count as an employee, important deadlines, the requirements to share this written policy with your employees and related record-keeping.
Contact the Ontario Ministry of Labour, Immigration, Training and Skills Development:
1-800-531-5551
Written policy on disconnecting from work
Social Insurance Number (SIN)
Generally, new employees must provide a SIN number within 3 days of being hired. As an employer, you are obligated to ensure that anyone hired with a SIN beginning with "9" has valid authorization to work in Canada.
Read online:
Employer information - Social Insurance Number (SIN)
Pay equity
If you employ 10 or more people, your business must pay your male and female employees the same salary for equal or comparable work.
Pay equity was made law to reduce the wage gap that exists between women's and men's wages that was due to the undervaluing of work traditionally done by women.
The law requires the value of jobs usually done by women be compared to the value of jobs usually done by men. Female jobs, which are found to be of equal or comparable value to male jobs, must be paid at least the same.
Contact the Pay Equity Commission:
1-800-387-8813
The Q&A Guide to Ontario's Pay Equity Act
Workplace violence and workplace harassment
Your employees should be able to enjoy a workplace that is free of violence and harassment. Resources and information are available to help ensure that your business provides a safe and healthy working environment for employees.
Contact the Ontario Ministry of Labour, Immigration, Training and Skills Development:
1-800-531-5551
Workplace violence and workplace harassment
Personal information protection
As an employer, you are responsible for safeguarding your employees’ personal information. The Privacy Commissioner of Canada’s guide to Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) helps businesses understand their obligations and comply with regulations.
Contact the Privacy Commissioner of Canada:
1-800-282-1376
Privacy in the Workplace
Hiring self-employed contractors
Before you hire a self-employed contractor, find out if the relationship will be classified as employer to employee, or business to self-employed contractor. A self-employed or independent contractor will generally have more control over their:
- tools and equipment
- hours of work
- wages and contracts
In Ontario, the three main authorities to contact about classification are:
- Canada Revenue Agency (CRA)
- Ontario Ministry of Labour, Immigration, Training and Skills Development
- Workplace Safety and Insurance Board (WSIB)
Contact the Canada Revenue Agency:
1-800-959-5525
Employee or self-employed?
Contact the Ministry of Labour, Immigration, Training and Skills Development
1-800-531-5551
The difference between an employee and independent contractor
Contact WSIB
1-800-387-0750
Workers and independent operators
Reporting requirements
Once you have successfully recruited employees, you will have reporting requirements for tax purposes and for when employees stop working.
Filing an information return (T4)
An information return is the T4 slip and the T4 Summary form used to report salary, wages, tips or gratuities, bonuses, vacation pay, employment commissions and all other remuneration employers pay to employees during the year.
Employers must file an annual information return with the Canada Revenue Agency (CRA) and give information slips to employees. The slips must be provided to employees by the last day of February following the calendar year to which the information return applies.
Contact the Canada Revenue Agency:
1-800-959-5525
Employers' Guide - Filing the T4 slip and summary
Record of employment (ROE)
Employers are required to complete an ROE whenever an employee stops working. The ROE must be issued within 5 calendar days of an interruption of earnings (e.g., parental leave, dismissal) or the day the employer becomes aware of the interruption, whichever is later.
Record of Employment on the Web (ROE Web) allows you to create, edit, submit, view and print ROEs for your departing employees. By managing your ROE needs online, you no longer need to order, store or mail in paper copies of ROEs.
Use online:
ROE Web
For more information or to order paper copies of the ROE, speak with Service Canada directly.
Contact Service Canada:
1-800-367-5693
How to complete the record of employment (ROE) form
Tools and calculators
There are a variety of online tools and calculators that can help you manage and understand your responsibilities as an employer.
The Employment Standards Act (ESA) guide for employers
This online guide for employers can help you understand your obligations and rights as an employer in Ontario.
Read online:
Your guide to the Employment Standards Act
Steps to hire foreign workers
If you are considering hiring a foreign worker, there are requirements that you may need to meet.
Read online:
How to hire a foreign worker
Health and safety resources
To ensure that people in the workplace stay safe, the Ministry of Labour, Immigration, Training and Skills Development has created resources to help identify hazards in various sectors.
Use online:
Workplace health and safety
ES Self-Service Tool
Use this tool to better understand some of your rights and obligations related to employment standards and determine if the amount you pay to an employee meets certain minimum monetary standards.
Use online:
ES Self-Service Tool
Payroll deductions calculator
The payroll deductions online calculator calculates payroll deductions based on the information you provide.
Use online:
Payroll Deductions Online Calculator
Other resources
Office of the Employer Adviser
The Ontario Office of the Employer Adviser (OEA) can offer you free expert and confidential advice and training on workplace safety and insurance issues in your business.
OEA can also help you:
- resolve injury and insurance disputes early
- get injured workers back on the job
- share best practices of other successful employers
If you are an employer with fewer than 100 employees, OEA can represent and intervene on your behalf at the Workplace Safety and Insurance Board and Workplace Safety and Insurance Appeals Tribunal.
Contact OEA:
1-800-387-0774
Office of the Employer Adviser
Employment and Social Development Canada – Labour Program
If you are a federally-regulated employee or employer (or from a Crown Corporation), the Labour Program run by Employment and Social Development Canada (ESDC) develops and administers the federal labour standards that define employment conditions in your place of work.
Read online:
Labour Program