CanadianPayroll/docs/source/onboarding_employee.rst

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OBNOARDING EMPLOYEE
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Employment Standards Requirements
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Each province/territory, as well as the federal government, sets minimum employment standards, including:

- Minimum wage
- Minimum age (may also be governed by other legislation)
- Required pay statement information:
  - Employee name
  - Pay period date
  - Rates of pay and hours worked
  - Gross earnings
  - Itemized deductions
  - Net pay

Internal Forms
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Typical commencement package forms include:

- Authorization for hiring
- Direct deposit agreement
- Union membership application
- Benefits enrollment (e.g., health/dental, pension)
- Confidentiality agreement

Authorization for Hiring
------------------------

This internal document includes:

- New employee's basic info
- Start date, department, salary
- Probation details
- Hiring authority’s signature

**Important:** Employer must obtain a valid SIN. A SIN starting with 9 must have a valid expiry date and associated work permit.

Union Membership
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For unionized workplaces:

- Union dues are deducted
- Employees sign authorization for deduction
- Exemptions may apply, but dues equivalent still required

Benefit Enrollment Forms
------------------------

Forms cover group insurance and pension plans:

- Employee indicates coverage type
- Signatures authorize payroll deductions

Confidentiality Agreement
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A legally binding agreement protecting sensitive company info:

- Defines proprietary data
- Outlines responsibilities, penalties, and timeframe

Required Federal and Provincial/Territorial Forms
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**Purpose:** Determine correct income tax withholdings.

Forms:

- TD1 (Federal)
- TD1 (Provincial/Territorial)
- TP-1015.3-V (Québec employees)

**Provincial/territorial withholding** is based on *province of employment*, but tax liability is based on *province of residence*.

**Adjustments:**

- Request extra withholding via TD1 or TP-1015.3-V
- Request reduction using CRA Form T1213 or RQ Form TP-1016-V

Essential Info on All Forms:

- Employee name
- Date of birth
- Social Insurance Number

Tax Credits (TD1)
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1. Basic personal amount
2. Canada caregiver (infirm children)
3. Age amount
4. Pension income
5. Tuition
6. Disability
7. Spouse/common-law partner amount
8. Eligible dependant
9. Caregiver for infirm spouse or dependant
10. Caregiver for dependant age 18+
11. Transfers from spouse
12. Transfers from dependant
13. Total

Additional Instructions:

- Fill out TD1 only if claiming more than basic credit
- Québec employees must always complete TP-1015.3-V

Tax Credits (TP-1015.3-V – Québec)
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- Basic amount
- Transfer from spouse
- Amount for dependants
- Impairment in mental/physical function
- Age amount, retirement income, living alone
- Career extension

Deductions:

- Remote area housing
- Deductible support payments

Content Review Highlights
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- Consent is required for personal info collection
- TD1 and TP-1015.3-V are used to calculate source deductions
- Claim amounts may differ between federal and provincial forms
- Employers must keep the forms on file (do not send to CRA/RQ)

Review Questions (Sample)
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1. What does an offer letter signature signify?
2. What documents are included in a commencement package?
3. Name three common internal forms
4. What must payroll verify on a hiring form?
5. What must be checked for SINs starting with “9”?
6. True/False: Union dues can be deducted without consent.
7. What authorizes benefit premium deductions?

Example Evaluations
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**Gloria Meyer (Alberta):**
- Claimed: Basic, eligible dependant, transferred tuition
- Appears accurate

**Luc Laframboise (Québec):**
- Claimed: Basic, spouse, dependant in school, tuition transfer
- Appropriate provincial and federal claims made

**Ingrid Johansson (Alberta, Single Parent):**
- Claimed credits for two children
- **Overclaimed** dependant credit – only one is eligible
- Needs correction on federal and AB TD1 forms

ONBOARDING EMPLOYEE EXERCISE
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Download and fill-up the required forms.

`Download the onboarding form <_static/td1on-fill-25e.pdf>`_