You've come to the right place for help. I'd be happy to help answer your question and steer you in the right direction.
QuickBooks works according to the rules and regulations of the CRA. Based on the CRA, the TD1 forms for 2020 for pay received on January 1, 2020 or later have an amount of $12,298. You can check out this link here for more info.
If you have further questions, don't hesitate to contact our support team using this link here.
The original poster is correct, the federal TD1 amounts HAVE changed since the December 12, 2019 release. See below;
T4127(E) Rev. 20/01
This says that the basic personal amounts are $13,229. If net income is more than $150,473, then the personal claim amount is $12,298. My employees don't make over $150K but their personal exemptions have been changed to $12,298. . What am I missing?
"1. Basic personal amount – Every resident of Canada can claim this amount. If your net income from all sources for the year will be $150,473 or less, enter $13,229.
If your net income will be between $150,473 and $214,368 and you want to calculate a partial claim, get Form TD1-WS, Worksheet for the 2020 Personal Tax Credits Return, and fill in the appropriate section. If your net income will be between $150,473 and $214,368 and you do not want to calculate a partial claim, or if it will be more than $214,368, enter $12,298. If you will have more than one employer or payer at the same time in 2020, see "More than one employer or payer at the same time" on page 2. If you are a non- resident, see "Non-residents" on page 2."
Good Question and looking for a response. The company hires employees on a short term basis and I have no idea what they will earn in a year from other companies. Should I use what Quickbooks has defaulted to Federal $12,298 or $13,229? There are some full time employees as well who will not make over $150K.
Another question - since I have paid some employees using the default of $12,298 and this is incorrect - how do make the correction on their next cheque? DB what CR what? It means too much was taken off their taxes.
I know how important it is to make sure all of your numbers are correct according to bookkeeping regulations for your business. It's essential that you consult an accountant for the best resolution here.
If you're not already connected with an accountant, you can find one in your area here: Find an accountant.
I'm confident the accountant will be able to give you the best possible advice.
The best possible advice on how to fix QBO's federal claim code parameters is to consult an accountant? What are they going to do about it? I'm sorry, but your answer is absolutely unacceptable. As per Canada's Federal claim code, QBO's amount is set wrong which makes it's payroll tax deductions wrong rendering the entire payroll service useless for us. It's very frustrating to be paying for a service that's supposed to make our businesses run more efficiently and running into problems like these, then to have its team members deny the fault of the programming.
Were you able to find a solution about adjustments you need to do to the employees? I just noticed that my QuickBooks haven’t updated anything yet and I have been using the wrong tax amount until now.
I’m very devastated and not sure what to do.
I found this page after some searching: https://quickbooks.intuit.com/learn-support/en-ca/employees-payroll/recent-updates-to-td1-basic-pers...
Seems like the message is that there's no need to redo anything as it's not a large enough amount to be material, and your employees will get the overpaid amount back when they file their tax return. I'm just going to adjust manually going forward and set a reminder for myself to doublecheck the amounts for Jan 2021 in case the 2021 compliance update doesn't override the manual amounts I entered.
Thanks for reaching out to us here. QuickBooks Online Payroll has the flexibility you need when adjustments are necessary in situations like this. I'd be happy to guide you through overriding the federal tax amounts when running payroll.
1. Select Payroll from the left menu and then Employees
2. Click on Run Payroll
3. Select the Pay Schedule and hit Continue
4. Review the Pay period and Pay date
5. Checkmark the Employee(s)
6. Click Preview payroll
7. Select the Edit ✎ next to the employee you need to make necessary changes to
8. Click on Employee taxes and enter the amount in the Current column for the tax Type you need to edit
9. When finished hit OK
10. Proceed by hitting Submit payroll
Note: If you don't see Employee taxes, reach out to an accountant for further assistance. They'll have the ability to make the necessary adjustments for you. If you don't have an accountant, we can help you find a ProAdvisor in your local area.
Please don't hesitate to reach back out if you have any other questions. We're here for you!
Thanks for updating this thread, Rita.
I want to make sure this issue gets taken cared of. For now, we highly recommend contacting our Support Team to help check on this for you. They can provide further troubleshooting to this payroll concen.
To get our support, follow the steps below:
I'm also adding this article about our contact options and support availability for your reference: Contact QuickBooks Desktop support
Please post here again after contacting us. I want to make sure this is taken care of and I'll be right here if you need any help with QuickBooks Desktop payroll.