Do you have any questions regarding work-related concerns?
The Government of Canada and the Government of Alberta have set regulations for all Canadian employers and employees to abide by. This resource list includes contacts for regulations surrounding work-related concerns, specifically, employment standards, human rights, and workplace health and safety.
See our contact list below or contact us directly for more information.
Finding the right information can be cumbersome at times. We hope this online resource helps! Executive Spa Group is a career and employment consultants that specializes in beauty industry work related concerns.
Congratulations on being ready to employ staff! This is a big step for your company. While it can be scary to put your company’s reputation in the hands of others, knowing your responsibilities as an employer can help ease your transition.
The first step to paying employees is to register for a CRA payroll account. This account will be linked to your Business Number (BN). To open your CRA account, you will need to complete a RC1B form.
As an employer, you will need to submit the following forms to the Canada Revenue Agency (CRA):
TD1AB
TD1
These forms are Personal Tax Credits Return forms that you have to give all new employees to complete. These forms help you determine what deductions you need to make from their paycheque.
What if employee is being paid hourly + commission?
It is common to pay beauty industry employees by commission, unless your employee is claiming expenses, the forms above will suffice.
Additionally, Alberta Employment Standards Code requires you to keep the following records for every employee:
Payroll record listing
Employee’s name, D.O.B., and address
Employee’s start date
Starting wage
A daily record of hours worked
All deductions
Any vacation time taken by employee including start/end dates of vacation + period of employment vacation was earned
Pay Administration record listing
Employee’s job title and job description
All correspondence relating to that employee
Any performance reviews including discipline reports
Copies of TD1/TD1AB forms
Information on benefits, WCB, and all other info that may apply
**NOTE: Payroll records must be kept for at least 3 years from creation date.
PAY SCHEDULE
At the end of each pay period, you must provide each employee with a statement of earnings that includes:
regular and overtime hours of work;
wage rate and overtime rate;
earnings paid that show each component separately;
deductions from earnings and the reason for each deduction;
time off in lieu of payment of overtime; and
statement period.
FYI- cash shortages can only be deducted from an employee IF: 1. the employee is the ONLY ONE with sole access to the cash 2. the employee authorizes the deduction in writing with the amount and date of shortage being deducted
If you plan to reduce any employee’s wage rate, overtime rate, general holiday pay, vacation pay or termination pay, the employee must be notified before the start of the pay period in which the reduction is to take effect. Keep in mind, these rates must always be at least the minimum required by the legislated standards.
REMITTING TO THE CRA
You must remit to the CRA all deductions you made from an employee’s paycheque (federal and provincial income tax deductions, E.I. premiums, and CPP) before the 15TH of the month AFTER the month in which you made the deductions.
All remittances must be made in bulk for all of your employees.
You must provide a T4 form to your employees ON or BEFORE the last day of February for the previous calendar year. This T4 contains information on the total CPP, E.I. premiums, and income tax deductions you made on your employees behalf for the previous calendar year.
‘Cultivating the Beauty Industry’
Executive Spa Group (780) 604 2772 info@executivespagroup
Not everyone will be looking for the same values in their training choice. Some people may value an online course over in-person training due to their busy schedules. Some may value the reputation of their educator. This is of utmost importance for people that plan on working in salons and spas. Having respected training on your resume is a must. On the other hand, if you plan to be self-employed, the reputation of your trainer may not matter as much.
Either way, asking the following questions will be useful in helping you choose the right training provider for your career path:
Sample questions
What are the total fees?
What is covered in the total fee? Tuition? Books? A kit? Application fees? Graduation fees?
Is there a Work Experience component?
How much real experience will be provided if any?
What student support is offered if any?
Some schools may offer added support such as financial aid, job search services, counselling, computer access, etc.
What type of credential do I get when I graduate?
There is a difference between certificate and certification. Certification is industry-recognized and granted only after meeting industry requirements through testing. A certificate is documentation of participation in any given course.
What are the minimum and maximum class sizes?
Class size matters in technical training. How many students will you be competing with for your instructor’s help and attention?
Are there any student perks?
Some training providers may offer discounts at distributors post graduation. Other examples include parking, food services, technology supports, etc.
Are the instructors available for one-on-one support?
What methods can I use to contact my instructor after class?
Is there an attendance policy?
What is the training providers policy on attendance, personal image standards, conduct, etc?
What is the refund policy?
What if I change my mind before I start? The first week after? What if something unexpected happens that prevents me from finishing the course?
EXECUTIVE SPA GROUP
EXECUTIVE SPA GROUP is a Beauty Industry Resource Centre offering business, career, and employment services to Albertans. Contact us to meet with our Career and Employment Consultant who can help you develop a career path that is right for you.
All Service Providers know that tips make a big difference! They are a great way to plump up that bottom line. To a degree, entrepreneurs have the ability to maximize their potential for tips by controlling different aspects of service delivery.
Service Providers who are self-employed have control of every detail of the client’s experience. For example, décor, cleanliness, and punctuality are only ripples in the vast sea of customer excellence you can offer to attract a certain clientele.
Tips are a game changer, however, it can get a bit confusing when it comes to claiming them come tax time, especially if you pay yourself as an employee, or have employees.
Do I include tips when calculating CPP and EI deductions?
There are 2 types of tips.
Controlled
Direct
Controlled tips
Controlled tips are mandatory to the client. For example, spa parties may include a mandatory 18% gratuity that is included in the bill. If you include or “control” the tip amount in the final bill, then these tips must be included in the insurable earnings (wages + VAC pay + tips + commission). Anything considered “insurable earnings” must be accounted for when calculating the EI and CPP deductions.
Direct tips
Direct tips are out of your control. A client may or may not tip you or your service providers. Only the client is in control of the amount of tip they choose to leave. You as the employer are simply passing the tip from the hands of the client to the hands of your service provider. Direct tips are NOT considered insurable hours and are therefore not included when calculating EI and CPP deductions.
The declaration of tips is the responsibility of the tip reciever when filing their personal taxes.
Esthetics is not a regulated industry in Alberta, Canada. However, industry guidelines exist to help estheticians reach their goal of becoming effective industry educators. We recommend that estheticians have at minimum 2-3 years of experience in their field before taking the next step into education.
Different roads to teaching esthetics.
Depending on your final goal, there are different ways to become an esthetics instructor in Alberta. Ask yourself a few questions to help you clarify your goal. For example, do you visualize one-on-one training or large classes? Do you want to be self-employed? Or would you prefer to work for a school?
Working at an existing school is a good path for those that want to mentor future service providers without worrying too much about administrative details . This pathway follows a student-centered approach where the focus is the development of your students.
Schools have their own criteria when hiring these positions. Leadership and organizational skills are important qualifications for instructors.
Smaller classes or one-on-one training, also known as private trainers or private vocational training, is the path for entrepreneurs.
Private trainers develop their own curriculum. In addition, they are often responsible for student recruitment and procurement of goods. One-on-one training is a good way to start as it allows for low delivery costs with little financial risk.
Certainly regulations exist at most levels of government to ensure private trainers meet minimum licensing requirements in their fields. Consequently, there are many requirements to meet to achieve a training license. For instance, private trainers must show that they have consulted industry leaders in approving their curriculum.
Will I need a teaching license?
If you are visualizing larger classes or courses that will cost students over $1,000 in tuition fees, you will need a teaching license. This license is different than a business license issued by your municipality.
Not all private educators have curriculums that require a teaching license. There a few exemptions to licensing revolving around the price and purpose of your course amongst other factors.
What is the difference between licensing and accreditation?
Licensing refers to the provincial government’s approval of a private trainer. Accreditation refers to the ability to offer students federal and provincial student loan options to pay for their tuition.
