Posts Tagged ‘staff’

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FAQs for Employer-Mentors; Beautiful Futures

FAQs for Employers interested in participating in ‘Beautiful Futures’

Do I get to keep my participant after the Work Experience is over?

Participants are expected to complete a minimum of 35 hours of work per week. Once participants begin their work experience with you, they become your employees, however, ESG will provide support as needed for the first 12 weeks. Support may include ways of working through attendance/punctuality issues, communication, teamwork, client care, etc. However, keep in mind that participants will have received 8 weeks of employability workshops prior to their placement with you, so these issues should not be expected.

How can my participant help me around my facility?

Well, besides industry certification in the technical focus, your participant has also been trained in Reception and Spa Assistant duties to free you from administrative duties while you develop your ideas.

What if my participant misses hours of work?

Like all other employees, missed shifts/hours are not paid to the participant. Though this is not expected, should this happen ESG can only help resolve issues if we are made aware of issues in a timely manner.

How does the Wage Subsidy work?

The wage subsidy is an incentive for employers to hire and train a participant to work for them. The new employee’s wages are partially subsidized by the program for 12 weeks, as long as the employee is working 35 or more hours per week. If eligible, the wage subsidy available is $6 per hour throughout the 12 weeks. The goal for both the employer and the participant is long-term employment. Wage subsidy provides wage relief during the initial period where you train your new staff to become functional in your facility.

Are all employers eligible for the Wage Subsidy?

To be eligible for the wage subsidy, you must:
  • Be a registered business with a legal business name and business number
  • Have been in business for at least one year
  • Offer a full-time position with a minimum on 35 hours per week
  • Offer the likelihood of long-term employment
  • Pay reasonable, competitive wages
You are not eligible for a wage subsidy IF participants fill a position that:
  • Was left vacant due to an industrial dispute in your workplace
  • Was left vacant due to a lay-off waiting to be recalled
  • Was terminated to instead employ a participant

Who pays the participant?

  • You will issue regular paycheques on paydays; ESG will reimburse the negotiated amount on a monthly basis
  • You will be required to submit monthly reports to ESG regarding the employee’s hours and wages.
  • Once a participant starts their work experience with you, they officially become your employee. Therefore, please ensure that your business insurance covers all employee-related liability.
  • You are responsible to deduct Canada Pension Plan, Employment Insurance and Income Tax will from participant wages and remit to the Canada Revenue Agency, just like your other employees.
Interested in participating as an employer? Apply OnLine to participate in this Program  

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Paying Employees

esg

Paying Employees

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 someone else, knowing your responsibilities as an employer can help ease your transition.

When you hire employees, you must 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 can use the Payroll Deductions Online Calculator (PDOC) to calculate payroll deductions.

ISSUING T4s
You must provide a T4form 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.

For more information view the Employers’ Guide Payroll Deductions and Remittances.

If you have any questions or concerns with the information provided on this article please contact Executive Spa Group.
‘Cultivating the Beauty Industry’
Executive Spa Group
(780) 604 2772
info@executivespagroup

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Beauty Industry Staff: Employee vs. Contractor

ESG Beauty Industry Career and Employment

Employee vs Contractor in Alberta’s Beauty Industry: What’s the difference?

Beauty Industry Staff: Employee vs. Contractor

The beauty industry offers all types of work arrangements. This article is meant to help both employers and service providers understand what their roles and responsibilities are in their particular work arrangements.

Let’s start by defining the difference between an employee and a contractor:
  • An employee works under an employee/employer relationship
  • A contractor carries out her/his work under an independent business/contractor relationship. In our industry, contractors are commonly known as “freelancers”, “chair renters”, “room renters”…
Remember that employees and contractors are governed by different employment laws and regulations, so it’s important to know which you (or your staff) fall under! Contracts are highly recommended as they allow for written clarification of any agreements made in the employer-worker relationship.

To help you understand the difference, we have come up with 4 different categories where we will highlight the differences between an employee and contractor:
  • Working Conditions
  • Tools and Equipment
  • Canada Revenue Agency
  • Employment Standards

Working Conditions

Employees in the beauty industry are regularly paid either a wage, salary, commission, or a combination of wage + commission. Contractors on the other hand submit invoices and may receive payment at intervals agreed upon by them and the employer. In the beauty industry however, chair/room renters pay an agreed amount to the employer and do not disclose to the employer their earnings or expenses.

Employees’ additional training is paid for or reimbursed by the employer, as where contractors pay for their own training costs and must have the required training before providing services.

Employees’ hours of work are determined by the employer, as where contractors choose their own time of work. In the beauty industry however, chair/room renters may work during their hours of choosing, as long as it in accordance with the employer’s hours of operation.

Tools and Equipment

Employees in the beauty industry are provided all the tools and equipment necessary to perform services. These tools and equipment are maintained by the employer, however, a good service provider will extend the life of any tool or equipment by using it properly and sanitizing it after every client. Employees can choose to provide their own tools.
Contractors provide and maintain their own tools and equipment. Ultimately, the employer and worker agree on the terms and conditions of their arrangement, but generally, chair/room renters are provided with a space within a salon/spa to provide services. Often a chair is provided by the employer to chair renters.

Canada Revenue Agency

Employees are deducted personal federal and provincial income tax, Employment Insurance (EI) premiums, Canada Pension Plan (CPP) from their employment earnings by the employer who in turn submits the deducted tax to Canada Revenue Agency (CRA).

Contractors submit their own federal and provincial tax deductions to the CRA. Sole Proprietors declare their earnings as personal income and therefore do not pay federal or provincial corporate taxes. Incorporated contractors submit a federal corporate income tax return along with their annual return. In terms of EI premiums, it is always the employer’s responsibility to pay the employer and employee portions of the EI premium. This includes EI premiums of chair/room renters. Contact ESG to learn more on how to deduct EI premiums from chair/room renters. In regards to CPP, the contractor is responsible to contribute to CPP.

Employees do not collect GST from their clients; Contractors including chair/room renters, (Sole Proprietors or Incorporated) must register to collect, charge, and remit GST once their gross annual revenues reach over $30K.

Employment Standards

Employees are covered by Alberta’s Employment Standard Code which entitles employees to general holiday pay/overtime pay/minimum wage/termination pay/vacation pay and time off. Contractors are NOT entitled to many of the perks enjoyed by employees. As a contractor in the beauty industry, it is important to cover all these details in a written contract prior to commencing employment.

Contact us to learn more

Executive Spa Group (ESG)
(780) 604 2772
executivespagroup.com

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