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New Employee Setup Checklist (Canada)

The payroll and compliance steps for hiring your first employee.

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Before Day One

  • Get a Business Number (BN) with a payroll program account if you don't already have one
  • Register for Workers' Compensation coverage (WSIB, WorkSafeBC, CNESST, etc.)
  • Decide on pay frequency (weekly, biweekly, monthly)
  • Choose a payroll provider or process

Paperwork

  • Have the employee complete a TD1 (federal and provincial)
  • Record the employee's SIN (within 3 days of their start date)
  • Collect direct deposit information
  • Confirm the employee's eligibility to work in Canada

Pay & Benefits

  • Confirm minimum wage and overtime rules for your province
  • Set up any benefits you're offering
  • Decide on a vacation and sick leave policy (provincial minimums apply)

Ongoing

  • Withhold and remit CPP, EI, and income tax on schedule
  • File payroll remittances (PD7A) and the year-end T4 Summary
  • Issue a T4 slip at year-end

Frequently Asked Questions

How quickly do I need to record a new employee's SIN?
Within 3 days of their start date — this is a firm requirement, and you should also confirm the SIN hasn't expired if it begins with a 9.
Do I need Workers' Compensation coverage for one employee?
In most provinces, yes — coverage requirements typically apply from your very first employee, though the specific agency and rules vary by province (WSIB in Ontario, WorkSafeBC in BC, CNESST in Quebec, etc.).
What's the difference between federal and provincial TD1?
Employees complete both — the federal TD1 covers federal tax credits, and the provincial TD1 covers provincial ones. Both affect how much tax you withhold from each paycheque.
Is this checklist different in the US?
Yes — see the US version of this checklist, which covers W-4/I-9 forms and Form 941 filing instead of TD1 and T4 requirements.

Related Resources

Payroll Register Template (Canada)
Free editable template
Employee Onboarding Checklist (Canada)
The non-payroll onboarding steps
Hiring Your First Employee Roadmap
Every resource, in sequence
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