The Canadian penny last year and now the SIN card. As of March 31, 2014 Service Canada will no longer produce SIN cards. Every person working in Canada must have a SIN. They will be issued in paper format starting at the end of March.
The Federal Government has announced that it will discontinue issuing the familiar white plastic cards March 31, 2014. In its place the Government will simply send out a letter. The reasons given are to save money and to eliminate theft, as the existing cards are not Chip/Security Protected.
The requirement for every person working in Canada has not changed, a SIN is still required, but will be issued in paper format. The process for systems to check that a SIN number is valid is the same. The requirement for requesting the employee's SIN within three days of starting is the same. Lastly the SIN's starting with a "9" must have an expiry date and the requirement for the employer to verify that the employee must also have a valid work permit is the same.
Employers must request an employee's SIN within three days of starting work and record their number. Employees are required by law to provide their SIN, whether by card, letter or other documentation showing the SIN. Employers should contact Service Canada directly if they suspect a SIN is being misused or is invalid. Be sure to document the attempts to obtain the SIN in the instance that employment terminates before receiving this piece of information.
An individual is required to provide a SIN to anyone who prepares information slips such as a T3, T4, or T5 slip. Failure to do so can result in a penalty of !00 for each occurrence.
SINs are sensitive personal information and it is the employer's responsibility to protect employee information in their possession from theft or misuse. For that reason it is recommended that you view the SIN and record it rather than keep a copy of it on file.
- Natasha Smyth, B.SC.(Agr.), CPM
For more information contact Info@onpayroll