Hiring Your First Employee
Hiring the first employee changes a business. The owner is no longer responsible only for customers, suppliers and their own work. The business becomes an employer with payroll, employment standards, safety and management responsibilities.
Decide what job actually needs to be done
Write down the responsibilities, expected hours, location, skills and supervision required. A clear role makes recruiting and performance management easier.
Employee or contractor?
Calling someone a contractor does not automatically make them one for tax or employment purposes. The real working relationship matters.
If classification is uncertain, investigate it before building the business around an arrangement that may be incorrect.
Set up payroll properly
Employers can have obligations to deduct and remit income tax, Canada Pension Plan contributions and Employment Insurance premiums. A payroll program account may be required.
Learn the remittance schedule and reporting requirements before the first payroll becomes overdue.
Understand Alberta employment standards
Provincial employment standards address areas such as hours of work, overtime, vacations, general holidays, leaves and termination. Specific rules and exceptions can depend on the occupation or industry.
Consider workers’ compensation
Determine whether Workers’ Compensation Board coverage is required for the business and workers involved rather than assuming every business has identical requirements.
Workplace safety begins immediately
Even a tiny employer has a responsibility to take workplace hazards seriously. Training, equipment, safe procedures and appropriate supervision should reflect the actual work.
Document the employment relationship
Written terms can clarify compensation, duties, hours, policies and expectations. Employment agreements should comply with applicable law. Legal advice can be worthwhile when drafting important terms.
Protect business access
Create individual accounts rather than sharing passwords. Give employees only the access required for their role and have a process to remove access when employment ends.
Be ready to manage a person
Payroll software does not make someone a good employer. Employees need direction, feedback, training and clarity about what good performance looks like.
The first hire should solve a defined capacity problem rather than simply provide another person for the owner to keep busy.
Calculate the full cost of the hire
The wage is only part of the cost of employing someone. Depending on the role, the business may also incur employer payroll contributions, workers’ compensation costs, vacation obligations, training time, equipment, software, insurance and supervision.
Estimate the full cost before deciding how many hours the business can sustainably offer.
Create an onboarding checklist
Before the employee starts, prepare payroll information, required forms, workplace policies, safety orientation, equipment and system access. Explain who the employee reports to and what should happen when they encounter a problem.
Keep employment records organized
Payroll, hours, vacation, employment agreements and other required records should be maintained consistently. Do not depend on text messages and memory to reconstruct important employment information later.
Manage performance early
If expectations are unclear, small problems can become larger ones. Explain the standard of work, provide feedback and document significant employment issues appropriately. For serious discipline or termination questions, obtaining qualified advice before acting can prevent expensive mistakes.
Sources & Further Reading
Reviewed: September 2026
This article provides general educational information and is not legal, tax, accounting, financial, insurance or professional advice. Requirements and platform rules can change. Confirm requirements relevant to your business with the appropriate authority or qualified professional.
The PureFarmFresh approach
Running a small business already requires wearing enough hats. Our goal is to explain the practical framework, distinguish rules from marketing advice, and point business owners toward reliable sources so they can make informed decisions for their own operation.