Making your first hire is one of the most significant milestones in the life of a small business. It signals that you have grown beyond what one person can handle, that your business is generating enough revenue to support another salary, and that you are ready to move from solo operator to employer. It is also one of the most intimidating steps, particularly if you have never navigated the legal, financial, and administrative requirements of bringing someone onto your payroll.
For small business owners in Markham and Richmond Hill, the good news is that the process is well-defined, the resources are accessible, and there are local programs that can help offset the cost. This guide walks through the key steps, from the legal groundwork to the practical decisions, that every Markham entrepreneur should understand before making their first hire.
Step 1: Determine What You Actually Need
Before you post a job listing, take time to clearly define what you need this person to do. This is not just about writing a job description. It is about understanding where the bottleneck in your business actually is and what kind of help will make the biggest difference.
Many first-time employers make the mistake of looking for someone who can do "everything." That person does not exist at the salary range most small businesses can afford. Instead, focus on the specific tasks that are consuming most of your time or that require skills you do not have.
Common first hires for small businesses in Markham include:
- An administrative assistant to manage scheduling, email, invoicing, and customer communication
- A part-time salesperson or customer service representative to handle front-line interactions
- A technician or skilled worker to increase your capacity to deliver your core product or service
- A bookkeeper or accounting clerk to manage financial records and payroll
Once you know what you need, determine whether the role should be full-time, part-time, or contract-based. Each comes with different legal obligations and cost structures. For most first hires, starting with a part-time position is a prudent approach that allows you to manage costs while assessing the fit.
Step 2: Register as an Employer with the CRA
Before you can legally pay an employee in Canada, you must register for a payroll account with the Canada Revenue Agency. This is a non-negotiable step that must be completed before your new hire's first paycheque.
To register, you will need a Business Number, which you may already have if your business is incorporated or if you have registered for HST. If you do not yet have a Business Number, you can obtain one through the CRA's online registration portal at the same time you set up your payroll account.
Your payroll account allows you to:
- Deduct Canada Pension Plan (CPP) contributions from your employee's pay
- Deduct Employment Insurance (EI) premiums
- Withhold income tax based on the employee's TD1 form
- Remit all deductions to the CRA on the required schedule
The CRA's online registration process is straightforward and can be completed through the My Business Account portal. You can also register by phone or mail, though online registration is the fastest option.
Step 3: Understand Ontario Employment Standards
Ontario's Employment Standards Act (ESA) sets the minimum requirements that all employers must meet. As a Markham business owner, you are bound by these standards regardless of the size of your business or the number of employees.
Key ESA requirements to be aware of include:
Minimum Wage
As of October 2025, the general minimum wage in Ontario is $17.20 per hour. This rate is reviewed annually and may increase. Check the Ontario Ministry of Labour website for the most current rate before setting compensation for your new hire.
Hours of Work and Overtime
The standard work week in Ontario is 44 hours. Any hours worked beyond 44 in a week must be paid at one and a half times the employee's regular rate. Daily overtime applies if the employee works more than eight hours in a day, unless you have a written agreement for a different arrangement.
Vacation and Public Holidays
Employees are entitled to a minimum of two weeks of vacation after each 12-month period of employment, along with vacation pay of at least four percent of gross wages. Ontario has nine public holidays on which most employees are entitled to a day off with public holiday pay.
Termination and Severance
If you need to terminate an employee, Ontario law requires that you provide written notice or pay in lieu of notice. The notice period depends on the length of employment. Understanding these obligations from the outset will help you avoid costly mistakes down the road.
Step 4: Register with WSIB
Most Ontario employers are required to register with the Workplace Safety and Insurance Board within 10 days of hiring their first employee. WSIB provides workplace injury insurance that covers medical costs and lost wages for employees who are injured on the job.
Registration is mandatory for most industries, and the premiums you pay are based on your industry classification and payroll size. Even if your business operates in a low-risk environment, WSIB registration is typically required and provides important protection for both you and your employee.
Failing to register with WSIB when required can result in retroactive premium assessments and penalties. It is one of the steps that first-time employers most commonly overlook, so put it on your checklist immediately.
Step 5: Set Up Payroll
Payroll is one of the most important operational systems you will build as a new employer. Getting it right from the start saves significant time and prevents costly errors with the CRA.
You have several options for managing payroll:
- Payroll software: Cloud-based tools like Wagepoint, ADP, or QuickBooks Payroll automate calculations, generate pay stubs, and handle CRA remittances. For a single employee, these services typically cost between $20 and $50 per month.
- Hiring a bookkeeper: A local bookkeeper or accountant can manage payroll on your behalf, ensuring compliance and handling the administrative burden. Many Markham-based accounting firms offer payroll services starting at reasonable monthly rates.
- Doing it yourself: If you are comfortable with numbers, the CRA provides free online payroll calculators and guides that walk you through the deduction calculations. This is the lowest-cost option but requires careful attention to detail.
Whichever method you choose, ensure that every pay period you are correctly calculating and withholding CPP, EI, and income tax, and that you are remitting these amounts to the CRA on schedule. Late remittances attract penalties and interest.
Step 6: Write a Clear Job Posting
A well-written job posting attracts better candidates and sets clear expectations from the start. For your first hire, clarity and honesty are more important than marketing flair.
Include the following in your posting:
- A specific job title that accurately reflects the role
- A clear description of daily responsibilities and expectations
- Required qualifications and any preferred skills
- Whether the position is full-time, part-time, or contract
- The compensation range, including whether you offer benefits
- Your business location in Markham or Richmond Hill
- How to apply and any deadline for applications
Post the listing on Job Bank Canada, Indeed, LinkedIn, and any industry-specific job boards relevant to your field. For local hires, consider posting in community groups and on local platforms like MarkhamBusiness.com, where residents actively look for opportunities in the area.
Step 7: Explore Hiring Grants and Subsidies
One of the advantages of hiring in Ontario is access to government programs that can significantly reduce the cost of bringing on a new employee. Markham business owners should explore the following:
Canada-Ontario Job Grant (COJG)
This program provides up to $10,000 per trainee toward eligible training costs. Small employers training and hiring unemployed individuals may be eligible for up to 100 percent funding to a maximum of $15,000 per trainee. The grant covers direct training costs and is particularly useful if your new hire needs to develop specific skills.
Starter Company Plus
Administered through the Markham Small Business Centre, Starter Company Plus provides training, mentorship, and grant funding of up to $5,000 for eligible entrepreneurs who are starting or expanding a business. While it is not specifically a hiring grant, the funding can support business growth that enables your first hire.
Summer Company
If you are a young entrepreneur aged 15 to 29, the Summer Company Program provides up to $3,000 in funding and mentorship to help you start and run a summer business. The program is administered locally through the Markham Small Business Centre, and the application deadline for 2026 is April 27.
Canada Digital Adoption Program (CDAP)
If your hiring is related to digital transformation, the CDAP provides grants to help businesses adopt digital tools and hire the talent needed to implement them. The program offers a $15,000 grant for businesses earning over $500,000 in gross revenue to develop a digital adoption plan with an approved digital advisor.
Step 8: Onboard Your New Employee Properly
A strong onboarding process sets the tone for the entire employment relationship. Before your new hire's first day, prepare the following:
- A signed employment agreement or offer letter outlining the terms of employment, compensation, start date, and any probationary period
- Federal and provincial TD1 tax forms for the employee to complete
- Collection of their Social Insurance Number for payroll purposes
- A clear schedule for the first week, including any training you plan to provide
- Workspace, tools, equipment, and any login credentials they will need
If your business has specific policies around attendance, conduct, health and safety, or customer service, document these in a simple employee handbook. It does not need to be elaborate, but having basic expectations in writing prevents misunderstandings and provides a reference point for both you and your employee.
Local Resources for Markham Employers
Markham business owners have access to several local resources that can help with the hiring process:
- Markham Small Business Centre: Offers workshops, one-on-one advisory sessions, and grant programs for entrepreneurs at all stages
- Employment Ontario: Provides free employment services, including help with job posting, candidate screening, and access to hiring incentives
- Markham Board of Trade: Offers networking events and resources for businesses looking to grow their teams
- York Small Business Enterprise Centre: Provides business planning support, mentorship, and connections to funding programs
Making the Leap
Hiring your first employee is a leap of faith, but it is also a calculated business decision. When done right, it frees you to focus on the work that drives revenue, improves your capacity to serve customers, and positions your business for sustainable growth.
Take the time to get the legal and administrative foundation right. Use the grants and resources available to you. Write a clear job posting, conduct a thoughtful interview process, and invest in proper onboarding. The effort you put into this first hire will pay dividends for years to come.
For more business tips, local guides, and community news across Markham and Richmond Hill, visit MarkhamBusiness.com.