Accounting and finance professionals are essential in almost every business. You could choose to work for a large corporation or a small business, in insurance, real estate, or any other sector that interests you. Errors relating to payroll and employment standards can be very costly for businesses, so skilled financial professionals like bookkeepers tend to be valuable.
At Discovery Community College (DCC) students will learn many essential bookkeeping office skills. This includes Canadian Payroll and Employment Standards. These regulations vary from province to province, and some industries need to follow federal standards.
Read on to discover three things that you need to know about Canadian Payroll and Employment Standards before starting your career.
1. All Employees Must Complete a TD1 Form
There are a number of important documents and forms that need to be completed and collected when hiring any new employee. This includes a social insurance number (SIN) and a TD1 form. It’s important that employers review a new employee’s SIN within 3 days of the start date. This is used to identify an employee and is used for income reporting.
As well as this, all new employees must be asked to complete the TD1 Personal Tax Credits Return form. This is used to calculate the amount of tax that needs to be deducted from an employee’s income, such as employment insurance or pension.
If there is a change to an employee’s tax status, for example they become disabled or get married,the employer must ask the employee to complete another TD1 form. Otherwise an employee could be paying the incorrect tax. You might learn about these forms in accounting school.
2. Learn About Business Numbers in Business Accounting Training
All registered companies in Canada need to have a Business Number (BN) from the government. This business number is used to create a payroll program account with the Canada Revenue Agency to ensure that all workers are paid correctly in line with Canadian employment law.
As well as this, it ensures that the business is registered to pay taxes like corporate income tax and import/ export taxes.
Whether you work for a small start up or a large corporation after graduating from business accounting training, you will find yourself using this business number regularly.
3. Employees Are Entitled to Vacation Time
In Canada all employees are entitled to some form of vacation time or pay. Normally, employers will need to pay employees for public holidays. These vary from province to province but as standard include:
- New Years Day (Jan 1st)
- Canada Day (July 1st)
- First Monday in September (Labour Day)
- December 25th (Christmas Day)
The minimum vacation pay requirement is 4% or 2 weeks in a year. This will typically increase with each additional year worked at the same company.
Do you want to find out about an accounting and finance training?
Contact Discovery Community College to learn more!