Summer Staffing and Payroll Tips for Calgary Businesses

Summer is hiring season for many Calgary businesses. Restaurants, landscaping companies, camps, retailers, and tourism operators all bring on seasonal staff to handle increased demand. Hiring temporary employees comes with the same payroll obligations as permanent hires, and getting the setup right avoids CRA problems down the road.

Employee vs. Contractor: Get the Classification Right

Before you hire, determine whether your summer worker is an employee or an independent contractor. CRA uses several tests: do you control how, when, and where the work is done? Does the worker provide their own tools? Can they hire their own helpers? Do they bear financial risk? If you control the work, they're likely an employee. Misclassifying employees as contractors is one of the most penalised mistakes by CRA.

Setting Up New Employees

For each new summer hire, collect their SIN, have them complete TD1 and TD1AB forms, and set up their payroll in your system. Even if they'll only work for a few months, all standard deductions apply: income tax, CPP (if they're 18 or older), and EI.

Students and Payroll

Student employees are treated the same as other employees for payroll purposes. However, many students earn below the basic personal amount threshold and may not have income tax deducted from their paycheques (depending on their TD1 elections). CPP and EI deductions still apply once they meet the minimum thresholds.

Alberta Employment Standards for Summer Workers

Alberta's Employment Standards apply to all employees, including seasonal workers. Key requirements include: minimum wage ($15.00/hour), overtime after 8 hours per day or 44 hours per week, statutory holiday pay for Canada Day and any holidays during their employment, and proper termination notice or pay in lieu.

End of Season Obligations

When your summer staff finishes, issue ROEs within five calendar days. At year-end, include them on your T4 summary even if they only worked a few weeks. All source deductions collected must be accounted for.

Castle Handles Seasonal Payroll

Castle Bookkeeping helps Calgary businesses set up and manage seasonal payroll, ensuring new hires are processed correctly, deductions are accurate, and year-end reporting is complete. Contact us for a free consultation.