r/business • u/Teestraw • 19d ago
Hello there, if you are facing any problem or issue in running your business or startup then state it below. I will try my best to provide you an actionable solution to your problem.
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u/9-5is25-life 19d ago
I'm starting a PLC and robotics contract house, right now I'm just an independent contractor, I have more jobs then I can handle myself. I'm incorporated, but don't know how exactly to start hiring employees legally, I dont know entirely what's involved to do it legally. Canadian, any help would be appreciated.
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u/krewekomedi 19d ago
In the USA we have a Small Business Association that provides advice on starting a business. Maybe there is a similar organization in Canada?
A second option is to find a payroll company that can set up the tax deductions, government forms, etc. with you and automate payroll.
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u/nifty_nomi 19d ago
Canadian Bookkeeper here! You likely have already registered with CRA for your GST/HST. They would have issued you a 9 digit business number, and then created a GST/HST account from that number (so, your 9 digit business number with RT0001 at the end). It's basically an account to file and remit your GST/HST to them. If you hire employees, then you need to register for a Payroll account with CRA. You can call them at 1 (800) 959-5525, and then they will issue you a Payroll account (so, your 9 digit business number with RP0001 at the end). And this account is basically and account to file and remit your Payroll Source Deductions and T4s. You can also register for a payroll account through your "My Business Account" with CRA.
You will need to deduct CPP, EI, and Income Tax from every paycheque and remit what you have deducted (plus some Company Portion CPP and EI) to CRA on the 15th of every month. (Sign up for my newsletter for monthly reminders!!!)Next, register with your province's WSIB or WCB.
Also, register for ROEWeb. If you hire, at some point, you will terminate an employee, and submitting an ROE is now done electronically, and can take a week or two to set up (they send a confirmation code in the mail just at set up) so do that now, and then when you only have 2 or 3 days to issue an ROE, you're ready to go.You'll need to track the deductions and submit T4s to CRA once the year is done, before the end of the following February.
Employment and Payroll is regulated both Federally and Provincially! (CRA for the T4s and deductions, Service Canada for the ROEs, Ministry of Labour for the Labour Laws, WSIB/WCB for the mandatory workplace insurance). I have a handy dandy "Ultimate New Business Research Checklist" available for download on my website, and it includes a section just for new businesses who are hiring employees; https://naomiwilkins.ca/checklists.html
I also have a spreadsheet for tracking deductions manually: https://naomiwilkins.ca/templates.html but if you are hiring more than a couple employees, I would suggest using payroll software, *SO* much easier. (QBO's payroll add on, or https://www.paymentevolution.com/ for example. )
If you are incorporated, make sure you understand how you are taxed and how the Shareholder Loan works!!! Ask your accountant, as I've seen some nightmares when shareholders don't understand that! I have a course available if you're interested in learning more! https://start-a-business-right.teachable.com/p/21-in-21-learn-to-run-a-canadian-business-in-21-days It also touches on hiring employees, though not an indepth how-to. But it does also talk about how as a shareholder, you can be on payroll too!
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u/Teestraw 19d ago
Hiring and managing people is messy at first because of paperwork but don't sweat it, it can be done along the way as well. Just have the conversation with an employee and provide him basic info like salary, leaves, job description, etc. To hire you can network or outsource it too. First hires are most important. I would say hire someone with integrity, intelligence and hardwork. However, I am not a Canadian and not aware with the its laws and can't give you any real advice. sorry for that. Google is ur friend. All the best mate!
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u/Shorter_McPlotkin 19d ago
Under ASC-420 we were allowed to impair real estate costs, such as rent, OPEX and taxes offset by an estimation of sublease income, but after the introduction of ASC-842 we have to use the impairment guidance from ASC-360, Fixed Assets. To further complicate matters, we are a service provider. How can we keep status quo and continue impairing real estate with the new guidance change?
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u/mlang7769 19d ago
I'm losing alot of work to a competitor that is heavy on the handouts. Most jobs from my biggest customer are going to this competitor. My competition has been doing this for years and they've only grown more wealthy and powerful. I have a family and need to provide for them, and my retirement.
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u/luffingjib 19d ago
Sounds like handouts have worked really well for your competitor. Find a way to give your clients value that the competitor doesn't offer, or start doing handouts as well
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u/yellowking38 19d ago
I’m selling time for money...need to break this cycle. I run. Marketing agency!
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u/luffingjib 19d ago
Have you considered working for a share in their company. Prove to your client that you can grow their business and in return you want shares in the business, or a percentage of the sales generated from the campaign. You can still charge them for your time but at a reduced rate.
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u/Teestraw 18d ago
You need to automate your marketing agency. Only tech and media can help you break this cycle. Do a research and setup a proper system with help of online tools and services, there are lot of them for everything. Outsource services if u can. If u can't automate right now bcz of whatever reason then scale your company, automate it, have big numbers, hire a CEO to manage it while you make only the most important decision like vision, direction, allocation of funds, etc.
Please rate my advice 1 to 10 with honest reasoning as a return favour.
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u/yellowking38 19d ago
I want to encourage more customers to refer us via word of mouth.
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u/Angelvsburgh 17d ago
A restaurant I worked at during my student years had cards. The cards said something like: 'Liked your meal? Share the experience!
The card gave a discount or a free drink to the person that brought back the card and a friend/colleague. It worked wonders. You could try something similar?
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u/AlaskaJack907 17d ago
I’m a manger trying to find sponsors for small content creators but I’m coming up dry
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u/Angelvsburgh 19d ago
My e-store sells age restricted products (liqueur and cigars) and as such, Google, FB et al, do not allow us to run publicity campaigns. After 8 years trading we still don't appear on Google's 1st page of relevant results in our local area. Please advise.
Thank you