Federal Payroll Accounts
Hiring an Employee
When you hire an employee you must obtain his or her social insurance number and have him or her complete a Form TD1 (Personal Tax Credits Return). This form can be obtained from the CRA website.
The TD1 will help you determine the amount of federal and provincial tax to be deducted from an individual's employment income. You keep the TD1 and are not required to send it to CRA. All individuals who have a new employer must complete the form. If the employee claims more than the basic personal amount, then the New Brunswick TD1 must also be completed. Both forms are available from the CRA website.
The form does not have to be completed each year, but if there is a change in either the federal or provincial credit entitlement, a new form must be completed within seven days of the change.
Even if your new employee is not able to give you a social insurance number or complete a TD1, you are still responsible for calculating payroll deductions once the employee starts to work for you, based on the basic personal amount only.
Visit the CRA website for more information about all the forms and tax tables needed to complete them.