Hiring staff for your medical practice is a major step toward growth, but it also comes with important responsibilities. Before you onboard your first (or next) team member, here’s what physicians in Canada need to keep in mind:
Payroll Setup
You must register for a CRA payroll account, withhold and remit CPP, EI, and income tax, and submit employer contributions on schedule. Using payroll software or a service provider can help ensure compliance.
Employee or Contractor?
Misclassifying a worker can lead to penalties. Understand the difference between hiring an employee (who works under your direction) and an independent contractor (who controls how the work is performed).
Mandatory Benefits
Vacation pay, holiday pay, and job-protected leaves are governed by provincial employment standards. These entitlements are mandatory—not optional.
Tax Deductibility
Wages, employer contributions, and benefit-related costs are deductible business expenses, but they also affect your broader tax planning—especially if you operate through a medical corporation.
Legal Obligations
From employment contracts to termination rules, employment law compliance is essential. Ignoring it can put your practice at risk.
Plan your hiring with clarity and confidence.
MedTax can help align your staffing approach with your tax strategy and long-term business goals. Contact MedTax today
