We had hired a few new employees, but they only worked the day and then said they will not be returning. Is this considered causal labor (where we can pay them in a cheque form) or do we need to add them to payroll? One of them worked a full week with us. Does he need to go on payroll or can he go as casual labor?
Yes. T4s are required in both cases.
What are termed the de minimis rules have two parts. A T4 is required if either of these 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 hence putting a person on payroll.