How to pay workers who stay only one day

[vickyp]

#81194

Forum: Community

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?

[vickyp]

#81193

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.

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