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<section id="obnoarding-employee">
<h1><span class="section-number">5. </span>🍁 OBNOARDING EMPLOYEE 🍁<a class="headerlink" href="#obnoarding-employee" title="Link to this heading"></a></h1>
<p>In the context of Canadian payroll administration, onboarding an employee refers to the formal process of integrating a new hire into
both the organizational and payroll systems. It ensures that the employee is properly registered, legally compliant, and ready to be paid
accurately and on time.</p>
<p>Key Steps on Onboarding an Employee:</p>
<ul class="simple">
<li><p>Collect Required Personal Information: Includes full legal name, address, date of birth, and Social Insurance Number (SIN). The SIN is</p></li>
</ul>
<p>critical for tax reporting to the CRA (Canada Revenue Agency).</p>
<ul class="simple">
<li><p>Obtain Federal &amp; Provincial Tax Forms: New employees must complete Form TD1 (Federal and possibly a Provincial version) to declare tax</p></li>
</ul>
<p>credits and determine income tax withholdings.</p>
<ul class="simple">
<li><p>Set Up Banking Info for Direct Deposit: Employees usually provide a void cheque or bank form to set up electronic payments.</p></li>
<li><p>Register the Employee in the Payroll System: Involves entering all personal and job-related data, assigning a payroll ID, and verifying</p></li>
</ul>
<p>employment status (e.g. full-time, part-time, contract).</p>
<ul class="simple">
<li><p>Enroll in Benefits or Pension Programs: If applicable, the employee may be signed up for group insurance, retirement savings plans (like</p></li>
</ul>
<p>RRSP or pension plans), and other benefits. These deductions must be accurately reflected in payroll.</p>
<ul>
<li><p>Assign Statutory Deductions that Employers must withhold and remit</p>
<blockquote>
<div><ul class="simple">
<li><p>CPP (Canada Pension Plan)</p></li>
<li><p>EI (Employment Insurance)</p></li>
<li><p>Income Tax (based on TD1 form)</p></li>
</ul>
</div></blockquote>
</li>
<li><p>Confirm Employment Agreement &amp; Start Date</p></li>
</ul>
<p>🍁 Compliance &amp; Record Keeping</p>
<ul class="simple">
<li><p>Employers in Canada are responsible for keeping accurate records of employee data, pay stubs, deductions, and remittances for</p></li>
</ul>
<p>at least 6 years.</p>
<ul class="simple">
<li><p>If audited by CRA, these documents must be readily available.</p></li>
<li><p>Employers must also provide T4 slips by end of February each year to summarize annual earnings and deductions for tax filing.</p></li>
</ul>
<blockquote>
<div><p>Employment Standards Requirements</p>
</div></blockquote>
<hr class="docutils" />
<p>Each province/territory, as well as the federal government, sets minimum employment standards, including:</p>
<ul class="simple">
<li><p>Minimum wage</p></li>
<li><p>Minimum age (may also be governed by other legislation)</p></li>
<li><p>Required pay statement information:
- Employee name
- Pay period date
- Rates of pay and hours worked
- Gross earnings
- Itemized deductions
- Net pay</p></li>
</ul>
<section id="internal-forms">
<h2><span class="section-number">5.1. </span>Internal Forms<a class="headerlink" href="#internal-forms" title="Link to this heading"></a></h2>
<p>Typical commencement package forms include:</p>
<ul class="simple">
<li><p>Authorization for hiring</p></li>
<li><p>Direct deposit agreement</p></li>
<li><p>Union membership application</p></li>
<li><p>Benefits enrollment (e.g., health/dental, pension)</p></li>
<li><p>Confidentiality agreement</p></li>
</ul>
<section id="authorization-for-hiring">
<h3><span class="section-number">5.1.1. </span>Authorization for Hiring<a class="headerlink" href="#authorization-for-hiring" title="Link to this heading"></a></h3>
<p>This internal document includes:</p>
<ul class="simple">
<li><p>New employees basic info</p></li>
<li><p>Start date, department, salary</p></li>
<li><p>Probation details</p></li>
<li><p>Hiring authoritys signature</p></li>
</ul>
<p><strong>Important:</strong> Employer must obtain a valid SIN. A SIN starting with 9 must have a valid expiry date and associated work permit.</p>
</section>
<section id="union-membership">
<h3><span class="section-number">5.1.2. </span>Union Membership<a class="headerlink" href="#union-membership" title="Link to this heading"></a></h3>
<p>For unionized workplaces:</p>
<ul class="simple">
<li><p>Amount of union dues to be deducted</p></li>
<li><p>Employees signature authorization for deduction</p></li>
<li><p>Exemptions may apply, but dues equivalent still required</p></li>
</ul>
</section>
<section id="benefit-enrollment-forms">
<h3><span class="section-number">5.1.3. </span>Benefit Enrollment Forms<a class="headerlink" href="#benefit-enrollment-forms" title="Link to this heading"></a></h3>
<p>Forms cover group insurance and pension plans:</p>
<ul class="simple">
<li><p>Employee indicates coverage type</p></li>
<li><p>Signatures authorize payroll deductions</p></li>
</ul>
</section>
<section id="confidentiality-agreement">
<h3><span class="section-number">5.1.4. </span>Confidentiality Agreement<a class="headerlink" href="#confidentiality-agreement" title="Link to this heading"></a></h3>
<p>A legally binding agreement protecting sensitive company info:</p>
<ul class="simple">
<li><p>Defines proprietary data</p></li>
<li><p>Outlines responsibilities, penalties, and timeframe</p></li>
</ul>
</section>
</section>
<section id="required-federal-and-provincial-territorial-forms">
<h2><span class="section-number">5.2. </span>Required Federal and Provincial/Territorial Forms<a class="headerlink" href="#required-federal-and-provincial-territorial-forms" title="Link to this heading"></a></h2>
<p><strong>Purpose:</strong> Determine correct income tax withholdings.</p>
<p>Forms:</p>
<ul class="simple">
<li><p>TD1 (Federal)</p></li>
<li><p>TD1 (Provincial/Territorial)</p></li>
<li><p>TP-1015.3-V (Québec employees)</p></li>
</ul>
<p><strong>Provincial/territorial withholding</strong> is based on <em>province of employment</em>, but tax liability is based on <em>province of residence</em>.</p>
<p><strong>Adjustments:</strong></p>
<ul class="simple">
<li><p>Request extra withholding via TD1 or TP-1015.3-V</p></li>
<li><p>Request reduction using CRA Form T1213 or RQ Form TP-1016-V</p></li>
</ul>
<p>Essential Info on All Forms:</p>
<ul class="simple">
<li><p>Employee name</p></li>
<li><p>Date of birth</p></li>
<li><p>Social Insurance Number</p></li>
</ul>
<section id="tax-credits-td1">
<h3><span class="section-number">5.2.1. </span>Tax Credits (TD1)<a class="headerlink" href="#tax-credits-td1" title="Link to this heading"></a></h3>
<ol class="arabic simple">
<li><p>Basic personal amount</p></li>
<li><p>Canada caregiver (infirm children)</p></li>
<li><p>Age amount</p></li>
<li><p>Pension income</p></li>
<li><p>Tuition</p></li>
<li><p>Disability</p></li>
<li><p>Spouse/common-law partner amount</p></li>
<li><p>Eligible dependant</p></li>
<li><p>Caregiver for infirm spouse or dependant</p></li>
<li><p>Caregiver for dependant age 18+</p></li>
<li><p>Transfers from spouse</p></li>
<li><p>Transfers from dependant</p></li>
<li><p>Total</p></li>
</ol>
<p>Additional Instructions:</p>
<ul class="simple">
<li><p>Fill out TD1 only if claiming more than basic credit</p></li>
<li><p>Québec employees must always complete TP-1015.3-V</p></li>
</ul>
</section>
<section id="tax-credits-tp-1015-3-v-quebec">
<h3><span class="section-number">5.2.2. </span>Tax Credits (TP-1015.3-V Québec)<a class="headerlink" href="#tax-credits-tp-1015-3-v-quebec" title="Link to this heading"></a></h3>
<ul class="simple">
<li><p>Basic amount</p></li>
<li><p>Transfer from spouse</p></li>
<li><p>Amount for dependants</p></li>
<li><p>Impairment in mental/physical function</p></li>
<li><p>Age amount, retirement income, living alone</p></li>
<li><p>Career extension</p></li>
</ul>
<p>Deductions:</p>
<ul class="simple">
<li><p>Remote area housing</p></li>
<li><p>Deductible support payments</p></li>
</ul>
</section>
<section id="entering-employee-information-into-sage50">
<h3><span class="section-number">5.2.3. </span>Entering Employee Information into Sage50<a class="headerlink" href="#entering-employee-information-into-sage50" title="Link to this heading"></a></h3>
<p>To enter a new employee into the Sage 50 Payroll module (Canada edition), start by navigating to the Employees &amp; Payroll section in the
Home window. Right-click the Employees icon and choose “Add Employee” to begin creating employees record. Input the employees full legal
name. Then, proceed to fill in the personal and payroll details across several tabs: the Personal tab for birth date and contact info, the Taxes tab to select the appropriate provincial
tax table, the Income tab to configure their pay frequency, and the Deductions tab to define benefit or pension deductions. Youll also
want to enter their bank details for direct deposit. For compliance, be sure to complete and store signed TD1 forms (Federal and Provincial)
separately, as Sage50 does not automatically generate these. Youll also need to set up EI, CPP, and Income Tax deductions and link them to remittance vendors in the system. Once all
information is reviewed for accuracy, save and close the record to finalize setup. If you prefer a guided approach, Sage50 also offers
an Employee Wizard to walk you through these steps.</p>
<section id="entering-personal-information">
<h4><span class="section-number">5.2.3.1. </span>Entering Personal Information<a class="headerlink" href="#entering-personal-information" title="Link to this heading"></a></h4>
<div class="admonition important">
<p class="admonition-title">Important</p>
<p>To maintain accuracy and compliance in Sage 50 Payroll, carefully verify that all employee information entered into the system,
including full legal name, Social Insurance Number (SIN), residential address, and compensation details, matches the data provided on
official documentation such as the signed employment contract and government-issued identification (e.g. drivers licence, Employment Contract).
Double-checking these entries helps prevent administrative errors and ensures that payroll records remain consistent with legal and
regulatory standards.</p>
</div>
<img alt="_images/onboarding-employee_001.png" src="_images/onboarding-employee_001.png" />
</section>
<section id="entering-work-details">
<h4><span class="section-number">5.2.3.2. </span>Entering Work Details<a class="headerlink" href="#entering-work-details" title="Link to this heading"></a></h4>
<img alt="_images/onboarding-employee_002.png" src="_images/onboarding-employee_002.png" />
</section>
<section id="setting-up-tax-deductions">
<h4><span class="section-number">5.2.3.3. </span>Setting-up Tax Deductions<a class="headerlink" href="#setting-up-tax-deductions" title="Link to this heading"></a></h4>
<img alt="_images/onboarding-employee_003.png" src="_images/onboarding-employee_003.png" />
</section>
<section id="entering-employee-compensation">
<h4><span class="section-number">5.2.3.4. </span>Entering Employee Compensation<a class="headerlink" href="#entering-employee-compensation" title="Link to this heading"></a></h4>
<img alt="_images/onboarding-employee_004.png" src="_images/onboarding-employee_004.png" />
</section>
<section id="specifying-employee-deductions">
<h4><span class="section-number">5.2.3.5. </span>Specifying Employee Deductions<a class="headerlink" href="#specifying-employee-deductions" title="Link to this heading"></a></h4>
<img alt="_images/onboarding-employee_005.png" src="_images/onboarding-employee_005.png" />
</section>
<section id="entering-wsib-other-expenses">
<h4><span class="section-number">5.2.3.6. </span>Entering WSIB &amp; Other Expenses<a class="headerlink" href="#entering-wsib-other-expenses" title="Link to this heading"></a></h4>
<img alt="_images/onboarding-employee_006.png" src="_images/onboarding-employee_006.png" />
</section>
</section>
<section id="review-questions">
<h3><span class="section-number">5.2.4. </span>Review Questions<a class="headerlink" href="#review-questions" title="Link to this heading"></a></h3>
<ol class="arabic">
<li><p>What is the significance of accurately entering the “Date Hired” field when setting up a new employee profile in Sage 50?</p>
<p><em>Accurately entering the “Date Hired” in Sage 50 is a critical step in ensuring the integrity of payroll records and overall HR
compliance. This field defines the employees official start date, which determines pay cycle alignment, benefit entitlement periods,
and the correct application of mandatory deductions such as CPP and EI. It also plays a pivotal role in historical payroll
reporting—including audit readiness and the generation of year-end T4 slips. Furthermore, the hire date is essential when preparing a
Record of Employment (ROE), as it establishes the starting point for the employees insurable earnings and service duration.</em></p>
</li>
</ol>
<p>2. Within the scope of Payroll Administration, how should the department ethically and legally respond when a supervisor requests access
to an employees date of birth for the purpose of workplace recognition, given that this personal information is already held by payroll?</p>
<blockquote>
<div><p><em>Under Canadian payroll administration and the Personal Information Protection and Electronic Documents Act (PIPEDA), sharing an
employees date of birth — even for positive intentions like workplace recognition, is not legally or ethically appropriate.</em></p>
<p><em>PIPEDA requires employers to:</em></p>
<blockquote>
<div><ul class="simple">
<li><p>Limit the collection, use, and disclosure of personal information to what is necessary for clearly identified business purposes.</p></li>
<li><p>Obtain meaningful consent before using personal data for any purpose beyond what it was originally collected for—such as payroll or benefits administration.</p></li>
<li><p>Protect employee privacy by restricting access to personal information on a strict need-to-know basis.</p></li>
</ul>
</div></blockquote>
<p><em>In this case, using the date of birth for celebrations or acknowledgments is outside the scope of payroll processing. Even if the
Payroll department holds this information, it cannot be disclosed to supervisors or other staff.</em></p>
</div></blockquote>
</section>
</section>
<section id="content-review-highlights">
<h2><span class="section-number">5.3. </span>Content Review Highlights<a class="headerlink" href="#content-review-highlights" title="Link to this heading"></a></h2>
<ul class="simple">
<li><p>Consent is required for personal info collection</p></li>
<li><p>TD1 and TP-1015.3-V are used to calculate source deductions</p></li>
<li><p>Claim amounts may differ between federal and provincial forms</p></li>
<li><p>Employers must keep the forms on file (do not send to CRA/RQ)</p></li>
</ul>
</section>
<section id="review-questions-sample">
<h2><span class="section-number">5.4. </span>Review Questions (Sample)<a class="headerlink" href="#review-questions-sample" title="Link to this heading"></a></h2>
<ol class="arabic simple">
<li><p>What does an offer letter signature signify?</p></li>
<li><p>What documents are included in a commencement package?</p></li>
<li><p>Name three common internal forms</p></li>
<li><p>What must payroll verify on a hiring form?</p></li>
<li><p>What must be checked for SINs starting with “9”?</p></li>
<li><p>True/False: Union dues can be deducted without consent.</p></li>
<li><p>What authorizes benefit premium deductions?</p></li>
</ol>
</section>
<section id="example-evaluations">
<h2><span class="section-number">5.5. </span>Example Evaluations<a class="headerlink" href="#example-evaluations" title="Link to this heading"></a></h2>
<p><strong>Gloria Meyer (Alberta):</strong>
- Claimed: Basic, eligible dependant, transferred tuition
- Appears accurate</p>
<p><strong>Luc Laframboise (Québec):</strong>
- Claimed: Basic, spouse, dependant in school, tuition transfer
- Appropriate provincial and federal claims made</p>
<p><strong>Ingrid Johansson (Alberta, Single Parent):</strong>
- Claimed credits for two children
- <strong>Overclaimed</strong> dependant credit only one is eligible
- Needs correction on federal and AB TD1 forms</p>
<div class="admonition-onboarding-employee-exercise admonition">
<p class="admonition-title">ONBOARDING EMPLOYEE EXERCISE</p>
<p>Using MS Forms, create a questionaire for gathering all required information for onboarding a new employee at Quebec-based company for the payroll purposes.</p>
</div>
</section>
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<h3><a href="index.html">Table of Contents</a></h3>
<ul>
<li><a class="reference internal" href="#">5. 🍁 OBNOARDING EMPLOYEE 🍁</a><ul>
<li><a class="reference internal" href="#internal-forms">5.1. Internal Forms</a><ul>
<li><a class="reference internal" href="#authorization-for-hiring">5.1.1. Authorization for Hiring</a></li>
<li><a class="reference internal" href="#union-membership">5.1.2. Union Membership</a></li>
<li><a class="reference internal" href="#benefit-enrollment-forms">5.1.3. Benefit Enrollment Forms</a></li>
<li><a class="reference internal" href="#confidentiality-agreement">5.1.4. Confidentiality Agreement</a></li>
</ul>
</li>
<li><a class="reference internal" href="#required-federal-and-provincial-territorial-forms">5.2. Required Federal and Provincial/Territorial Forms</a><ul>
<li><a class="reference internal" href="#tax-credits-td1">5.2.1. Tax Credits (TD1)</a></li>
<li><a class="reference internal" href="#tax-credits-tp-1015-3-v-quebec">5.2.2. Tax Credits (TP-1015.3-V Québec)</a></li>
<li><a class="reference internal" href="#entering-employee-information-into-sage50">5.2.3. Entering Employee Information into Sage50</a><ul>
<li><a class="reference internal" href="#entering-personal-information">5.2.3.1. Entering Personal Information</a></li>
<li><a class="reference internal" href="#entering-work-details">5.2.3.2. Entering Work Details</a></li>
<li><a class="reference internal" href="#setting-up-tax-deductions">5.2.3.3. Setting-up Tax Deductions</a></li>
<li><a class="reference internal" href="#entering-employee-compensation">5.2.3.4. Entering Employee Compensation</a></li>
<li><a class="reference internal" href="#specifying-employee-deductions">5.2.3.5. Specifying Employee Deductions</a></li>
<li><a class="reference internal" href="#entering-wsib-other-expenses">5.2.3.6. Entering WSIB &amp; Other Expenses</a></li>
</ul>
</li>
<li><a class="reference internal" href="#review-questions">5.2.4. Review Questions</a></li>
</ul>
</li>
<li><a class="reference internal" href="#content-review-highlights">5.3. Content Review Highlights</a></li>
<li><a class="reference internal" href="#review-questions-sample">5.4. Review Questions (Sample)</a></li>
<li><a class="reference internal" href="#example-evaluations">5.5. Example Evaluations</a></li>
</ul>
</li>
</ul>
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