IBEX

Collecting new hire information right away avoids costly payroll mistakes.

In the chaos of introductions, orientation meetings and getting the "newbie" settled, the paperwork often goes left undone.

It is a legal requirement to obtain the social insurance number, full name, address and date of birth from each of your employees. Failure to collect this information can result in government fines or, at the very least, red flags at the Canada Revenue Agency.

The easiest way to make sure you are collecting the necessary information is to insist that new employees fill out their federal TD1 form before you release their first pay cheque. The policy will make your company look professional and ensures your employees do not pay too much tax. It will also save you time, effort and expense when balancing your information for T4s.