TD1 Forms Overview
In Canada, the TD1 forms are used to determine the amount of federal and provincial or territorial income tax that an employer should deduct from an employee's pay. The main difference between the federal TD1 form and the provincial TD1 form is the jurisdiction to which the taxes apply:
Federal TD1 Form:
The federal TD1 form is used to calculate the federal income tax that should be withheld from an employee's income by their employer. Federal income tax is collected by the Government of Canada.
The federal TD1 form takes into account federal tax credits, deductions, and exemptions. These credits and deductions can vary over time and may be updated by the government.
Provincial TD1 Form:
Provincial or territorial TD1 forms are used to calculate the provincial or territorial income tax that should be withheld from an employee's income by their employer. Each province and territory in Canada has its own TD1 form because they have the authority to levy their own income taxes in addition to the federal taxes.
Provincial TD1 forms take into account provincial or territorial tax credits, deductions, and exemptions that are specific to that jurisdiction. These forms may also change over time as provinces and territories adjust their tax laws.
Employees are required to complete both a federal TD1 form and a provincial or territorial TD1 form to ensure that the correct amount of federal and provincial/territorial income tax is deducted from their pay. The information provided on these forms helps employers determine the appropriate tax withholding for each employee based on their individual circumstances, which can include factors such as dependents, tax credits, and additional sources of income. It's important to keep these forms up to date to ensure accurate tax withholding and to avoid any potential tax-related issues at the end of the year.
Uploading TD1 Forms
Most Workers choose to Skip TD1 Forms which indicates to the production that you'd like the deductions to include the basic personal amount.
However, if you'd like the production's payroll accountants to process your taxes differently, please keep this unchecked. Click on the Download link to access the Federal and Provincial TD1 Forms from Canada Revenue Agency website. Make sure you download the fillable PDFs, enter in the forms, then use the Upload button to add them to your profile.
🇨🇦 All TD1 Forms can be accessed on the Canada Revenue Agency website.
