Hiring your first employee: a payroll set-up checklist

Your first hire is a milestone — and payroll has to be right from the very first paycheque. Here’s what to have in place before day one.

Before the first pay day

Open a CRA payroll account (an RP account) — you need it to remit source deductions.
Collect the employee’s Social Insurance Number and a completed TD1 form (federal and Ontario), which set how much tax to deduct.
Choose a pay schedule — weekly, bi-weekly, or semi-monthly — and stick to it.
Set up deductions correctly: CPP, EI, and income tax come off every pay, and the employer’s share goes on top.
Know your remittance schedule: most new small employers remit monthly, due on the 15th of the following month.
Register with WSIB if your Ontario business is in an industry that requires it.
Plan for year-end from the start: every pay record feeds the T4 you’ll issue after December 31.

With these pieces in place before the first pay run, payroll becomes routine instead of a scramble.