The issue here really is verifying the employee’s identity.
When the government provided employees with a SIN card, the requirement was for employers to ask the see the card. The primary reason for this is to match the SIN number provided with the name as found on other employee documents. For example, the name on the SIN card should match the name on the direct deposit information provided. If the banking information says the person’s name is Mary Smith, but the SIN information is for Robert Jones, you have some questions to ask.
This is about both protecting the employer from payroll fraud, as well as ensuring you are reporting the correct name on the T4 and Record of Employment. Once you get beyond 25 or so employees, or there are multiple locations, it can be hard for payroll staff to have direct knowledge of everyone on the payroll. Getting a government document with both the employee name and SIN and matching this to the person’s banking information is one way to help minimize payroll fraud.
That’s why its good practice to ask for a copy of the Service Canada letter that confirms the SIN, a portion of the person’s latest CRA Notice of Assessment, an ROE or T4 from a prior employer, rather than just having employees provide the SIN itself. If you are using employee self-service, then employees should have some way to upload these into your system.
Alan R. McEwen Alan McEwen & Associates 250-228-5280 In the Pacific time zone https://alanrmcewen.com