Close on the heels of adding form W11 to our Universal Onboarding library, we’ve expanded our document list again. This time, we’re including our neighbors “North of the Border” by making the TD-1 form available in electronic format. Both the national and provincial versions are in our universal forms library, so all Canadian employees are covered. This form is the rough equivalent of the W4 (but is charmingly referred to as a Personal Tax Credits Return rather than a Withholding form).
Sticking to the Rules
Just like in the U.S., filling out tax forms is an unavoidable part of new hire onboarding paperwork. Fortunately, now this can be done with the TD-1 in a way that enforces CRA (Canada Revenue Agency) rules. For example, if an individual works for more than one employer, they can’t take the credits listed on the form with both jobs. That means there may be a situation in which an employee needs to decline to take any TD-1 deductions (but should still fill out the form). The amount on line 13 must be zero if the box is marked showing that the total amount of income from all sources is greater than the amount of tax credits claimed on a form submitted to another employer. Ensuring that new hires don’t make contradictory selections is part of the normal rules enforcement process for all the government forms Emerald Software uploads to its library for use in onboarding.
Simple for HR
If a new hire doesn’t fill out a valid TD-1 form, the employer is required to make deductions based on the basic personal amount allowed. This is similar to how the system works in the U.S. – HR can’t make educated guesses about what an employee’s selections should be. So, making sure every new hire completes a form accurately on their first day of work assists greatly with compliance. It also cuts down on confusion and back and forth discussions to clear up errors or omissions.
Easy for New Hires
Because every province and territory in Canada also has its own TD-1 or Source Deductions Return (Quebec), new hires will enjoy not having to fill out all their personal information twice. Fields that are identical between the national and provincial forms can be automatically populated from one screen to the next.