These are some great questions we have been asked while processing payroll.
A TD1 is a form that we use to determine the amount of taxes that needs to be deducted from an individual’s employment income to be sent to the Canada Revenue Agency (CRA). These are federal and provincial forms that need to be filled and given to the employer so the proper amount of taxes can be calculated by the employer.
Contrary to what you may be hearing, people do not need to fill out a TD1 every year unless their tax situation changes. Changes may be:
- New job with new employer
- Wants to update personal tax situation
- Wants to deduct additional taxes from their pay stub
If in doubt, reach out to ThinkEasy and we will be more than happy to explain how to fill out this form.
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