10 things to do for Onboarding Employees in Canada

A Canadian Business Number (BN) is a nine-digit number issued to companies by the Canada Revenue Agency (CRA) that gives businesses their own unique identity. Employers need to have a Business Number and open a Payroll Deductions Account to set up a work location in Canada and meet their tax obligations. You can obtain a BN in three ways: registering online, completing Form RC1 and mailing or faxing it to your nearest Tax Service Office or Tax Centre, or contacting the Canada Revenue Agency directly at 1-800-959-5525. If you already have a BN, you only need to add a payroll program account to your existing number. If you don’t have a BN, you must request one and register for a payroll program account before your first remittance is due.

The Social Insurance Number (SIN) is a nine-digit code required for work in Canada and to access government programs and benefits. As an employer, you must view every new employee’s SIN card within three days of the employee starting work and record the employee’s name and SIN exactly as they appear on the card. It’s important to watch for SINs that begin with the number “9,” as this indicates a person who is not a Canadian citizen or permanent resident and is authorized to work only for a particular employer with valid employment authorization issued by Citizenship and Immigration Canada. Non-citizens are also required to provide additional verification documents including a copy of their passport, birth certificate, work permit, and visa.

Form TD1, Personal Tax Credits Return, determines the amount of tax to be deducted from an individual’s employment income or other income such as pension income. There are both federal and provincial/territorial TD1 forms. A new employee must complete the federal TD1 form, and if they are claiming more than the basic personal amount, they also need to complete the provincial TD1 form for their province or territory. In Quebec specifically, employees need to use both the federal TD1 and the Quebec provincial form. This form must be completed during the onboarding process to ensure proper tax deductions from the employee’s paychecks.

A program account is what your business receives when it registers for a CRA program to meet tax obligations. The most common CRA program accounts a business will need include GST/HST (RT) for goods and services tax, Payroll deductions (RP) for employee withholdings, Corporation income tax (RC) for corporate tax obligations, and Import-export (RM) for businesses engaged in international trade. An organization may require more than one CRA program account as the business expands, but you only need one Business Number. When you register for any of these programs, you receive a CRA program account linked to your BN, and if you don’t already have a BN, one will be issued to you.

EMP Trust’s onboarding technology makes the new hire process more efficient and reduces mistakes that commonly occur with manual processes. Much of the paperwork can be completed by employees prior to their joining date through an employee portal or via email, which helps them feel welcome and connected to the organization from day one. The portal provides access to company newsfeeds and other organizational information, helping new hires integrate into company culture before they even start. The system helps manage employee records such as timesheets and performance evaluations, and handles forms related to running payroll such as T4 slips. While small businesses may find spreadsheets sufficient, employers who regularly onboard new employees in Canada should consider using dedicated technology solutions like EMP Trust to ensure compliance with provincial and territorial employment standards.

Successful onboarding requires preparation before the employee’s first day to make them feel welcome rather than having them wait while things get organized. Key steps include providing necessary access, logins, and permits for the employee, assigning a work buddy to help them navigate the organization, announcing to everyone that someone new is joining the team, creating and sharing the new hire’s first week or month itinerary, connecting them with their manager and team members, providing an office or campus tour, and offering a welcome gift or card. It’s important to get the new hire working on tasks—even small ones—on the first day to provide a sense of ownership and help them start contributing to the team. Managers and HR should check in during the first week and after the first 30 days to address any areas the new hire is finding difficult and to gather feedback for improving future onboarding processes.