Employees Taxable Credits information (TD-1)

Problem:

My employee has provided me with a new TD 1 form or updated TD 1 form, how do I enter the information into the system?

IMPORTANT:

It is important to note that you can ONLY enter the additional taxable credits information that would be recorded and provided via the TD-1 for an employee after an employee has provided YOU with the information themselves. The submission of the TD-1 information is a LEGAL document that MUST be signed by the employee, incorrectly and must be kept on record. Intentionally incorrectly entered information is a criminal offence.

Solution:

In order to enter the TD-1 information for the employee you would go to Employees >Taxation Information. Note that there are TD-1 details for every employee at both the Federal and Provincial/Territorial Level.

• First: Basic claim amounts are managed and handled by software updates and the tax tables of your software. You do NOT have to update the basic claim amounts on an employees taxation information screen yourself.
• Second: Paymate Platinum and Clarity allow you to enter the complete details of the employees TD-1 information from all applicable fields.  For example, if the employee claims to have two children all you have to do is enter 2 in the # of children field, the amount per child will be added to the credits for the employee.
  This allows you to enter the details used for the basis of the calculation and anything that is rate or yes/no will be handled in software tax updates for you each year.
• Third: Any Manually entered adjustments must be updated each year when the tax tables are changed.

Additional Taxes on TD-1

In order to enter the additional taxes an employee has asked to be taken off their pay each pay of the amount documented on the TD-1 form you go to the Employees Menu, Master Paycard, go to the "Taxes" tab.  Here you will find a category called "Federal Extra Income Tax" (default # 302). It is in this category that you would enter the additional credits the employee has asked to be taken off of their pay.