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Hiring First Employee - Any Formalities?

by kinkarso
8 replies
Hi guys,

I'm a web entrepreneur and beginner IM'r, and I've gotten to the point where I am looking to hire my first part-time employee to help me lessen the load. I have already gotten through all the interviews and have one person in mind.

This person lives in the US, and I'm here in Canada. Now I do do business under my company name, but I have no idea if there are any special documents or anything I need to go through in order to hire this guy. (nothing major, just a project manager/webmaster assistant).

Or do I just hire him, pay on time, and have everything in print?

Anyone have experience in this field and would like to share their thoughts?

Thank you,
Donny
#employee #formalities #hiring
  • Profile picture of the author Sarah Harvey
    Even before you started the hiring process you should have thought about it. You need a contract that outlines the terms for your new employee. It doesn't have to be fancy, but what is really essential is the fact that it will state what you expect of him, and what the wages are etc. So everything is in black and white. Then send it over via email and (hopefully) you have a fax machine. Get him to print and sign it. He needs to fax you the signed copy over. Get his full details, like name, address, contact numbers etc.

    You might think that this isn't needed, but if any issues arise from your working relationship with your new employee, it can be disastrous if you do not have everything set out properly.

    I mean when a person signs up for a website doing freelance work, you still sign some form of contract. It is essential. Then one or other party cannot say they did not know what was expected of them or try and lie about something.

    In my past experiences dealing with people, I had to draw up contracts to protect myself and the other party. It works so much better.

    Suggestions is to search for sample employment contracts online and then modify the wording to suit the business.

    The nice way to do it, is through a lawyer, but you can also do it yourself.

    Good luck!
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  • Profile picture of the author SuzanneH
    Are you actually hiring him as an *employee* or more like a contractor? If as an employee, then, seriously, the complications for taxes should be looked into -- you have to withhold taxes for an employee, but do you do it in his case because he's in the US. The legal ramifications are quite serious...

    You could try talking to someone at the CRA:
    Canada Revenue Agency

    Even if you want to hire him as a contractor, the CRA may still consider him an employee:

    RC4110 - Employee or Self Employed?

    Suzanne
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    • Profile picture of the author Zach Booker
      Just by calling him an employee you will run into a lot of tax problems because hes across the border.
      I'm not sure to what extent but it could be quite serious...the last thing you want is a audit.
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      • Profile picture of the author Kevin Riley
        Having had employees for a number of businesses, I now only sub-contract. Much better. Clarify what's expected and the amount you'll pay -- in writing.
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        Kevin Riley, long-time Warrior living in Osaka, Japan

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        • Profile picture of the author Jason Moffatt
          Originally Posted by Kevin Riley View Post

          Having had employees for a number of businesses, I now only sub-contract. Much better. Clarify what's expected and the amount you'll pay -- in writing.
          Holy Crap Kevin!

          You got a testimonial from "The Jerk"?

          Just remember... "The cans are defective".
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          https://www.jasonmoffatt.com
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          • Profile picture of the author Lee McIntyre
            Hi Donny

            I recently hired my first employee in the UK and the best advice would be to get lots of professional advice.

            Here we have Business Link advisors who provide free advice and support on this type of thing, but I'm not sure if there's an equivalent service where you are.

            Seeking advice made me think of issues I hadn't thought of so I'd certainly recommend speaking to someone competent.

            I hope this helps

            Lee McIntyre
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            • Profile picture of the author TheVCF
              Dear Donny and Fellow Warriors,

              Although the legal and tax "mumbo jumbo" is certainly different in Canada, and/or anywhere else, from what it is here in the US ...

              I would Highly Recommend you "stick with" Independant Contractors, rather than "W-2 (here) Employees"! as this Greatly Simplifies Your Administrative Overhead, etc. ok?

              Having stated that ... IOHO / We would also Highly Recommend that you should have some kind of Signed Contract / Agreement, including some kind of CANDA (confidentiality and non-disclosure / non-compete agreement) and whatever you need there in Canada to report the "wages paid" to this person for tax purposes, here it's an I-9 (if I recall correctly) form up front and a 1099 issued to them at tax time, you know?

              I hope this all helps and Have a Great Day!

              - Michael
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