We hired 2 new employees. The first worked only one day and said he wouldn’t be returning; the second worked a full week and then quit. Would this be considered casual labour where we can pay them in a cheque form or do we have to add them to payroll?
You’d need a T4 for the employee in both cases.
The so called de minimis rules allowing you to treat labour as casual labour DON’T apply, in other words, a T4 is required, if either of these 2 conditions is met:
- The taxable income exceeds $500; or
- EI, CPP or income tax source deductions should have been taken.
Since EI is now on a first dollar basis, insurable earnings over roughly 60 cents (.01 / the current EI employee rate 0.0166) triggers the need for a T4 and putting the person on payroll.