Section 3: Labour Relations and Record Keeping

Business Transaction Records

In every organization a great deal of information is necessary to allow those who manage it to make informed decisions. Business owners need records for things such as money received, money paid out, sales made, merchandise on hand, purchases, taxes, and employee earnings and deductions.

GST Records

Businesses are required to keep accurate GST records. Written records must be maintained of the amount of GST charged and the amount of GST that has been paid. To support a claim for a refund, it is necessary for a business to retain copies of its invoices. These do not need to be filed with the return, but they must be kept in the event of an audit .

Payroll Records

The Unemployment Insurance Act and the Canada Pension Plan have provisions that allow employers to deduct a certain amount from their employees' wages and remit this amount to Revenue Canada. Employers are required to make contributions on behalf of all their employees for both.

Under the Income Tax Act , employers are required to withhold a certain portion of an employee's wage and remit the withheld money to Revenue Canada.

Employee Records

It is imperative for businesses that employ staff to keep employee records. For instance, time sheets assist employers in keeping track of regular hours and overtime worked, vacation days, and sick days taken. A copy of an employee's resume and contract, in addition to forms relating to employee deductions and personal information, are necessary as a source of reference.

Health Care Premiums

Every province has regulations with regards to some form of a health care program. In Alberta, all employers with five or more employees, including owners and partners, are required to form an employee group for payroll deductions of health care premiums . Records for these become the employer's responsibility as does payroll deductions and remittance of these funds in accordance to established guidelines.