Set up an employee

When you hire an employee, you have to:

• get your employee's social insurance number (SIN); and
• get from your employee a completed Form TD1, Personal Tax Credits Return.

If the employee works for you and you cannot get the SIN or Form TD1, you are still responsible to start calculating and withholding payroll deductions.

Employees who do not fill out new forms may be penalized $25 for each day the form is late. The minimum penalty is $100, and increases by $25 per day to the maximum of $2,500.

Employees do not have to fill out new TD1 forms every year if their personal tax credit amounts have not changed.