All employment income is subject to an income tax deduction, which is deducted from your earnings. How much income tax is deducted from your pay is dependent on your personal situation. Based on your personal situation, there are tax exemptions that you can claim to reduce your income tax deduction amount immediately at the source, or you may choose to wait to claim tax exemptions when you file your personal tax return each year.
- For employees who claimed amounts other than the Basic Personal Amount (BPA) Credit on the TD1 and TD1BC/TD1AB Form during the tax year — please update your tax elections in January each year.
Employees should consider completing a new form each year if they:
- are a higher earner and claim a lower BPA value
- are entitled to other credits (e.g., spouse or common-law partner)
- had claimed exemption from tax in the previous year and this no longer applies
- had requested additional voluntary income tax deductions and wish to change this amount
Please note that an employee should submit a new TD1 form at any time during the tax year if there is a change to their situation. Incorrect TD1 exemptions may lead to the inaccurate calculation and remittance of federal and provincial/territorial income tax deductions.
- For employees who wish to claim tax credit amounts other than the Basic amount — please complete a new electronic TD1 form and submit it to Payroll.
- For employees who claim only the Basic Personal Tax Credit — you do not need to complete a new TD1 every year. If a change occurs with tax implications, please complete a new electronic TD1 form and submit it to Payroll no later than seven days after the change.
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