Recent updates to TD1 Basic personal amount on the CRA's TD1 form

On January 9, 2020, the CRA updated the Payroll Deductions Online Calculator, which applies the Federal Basic Personal Amount as per the proposed legislation. The amount has changed from a set amount to a dynamic formula amount.

Other key forms were updated, including:

• TD1
• TD1-WS
• T4127 Guide - January payroll deductions formulas

Note: At the time of our December payroll compliance release, these changes were not implemented into the available guides.

What should users do?

Review the following:

• The section “Proposed Changes to Federal Basic Personal Amount” on this page for the Canadian Payroll Association (CPA) assessment on the proposed changes. Based on the assessment of the CPA, this change does not represent a significant monetary impact per pay period.
• The CRA FAQ on the changes.

Can we change the TD1 amounts manually?

Yes, you can manually update the TD1 amounts. Review this article prior to making any adjustments to the TD1 amount manually.

However, if the proposed legislation does not pass, you will have to make changes and the employees will reconcile at the end of the year.

To manually change the amounts:

1. Select Employee Centre under the Employees menu.
2. Right-click on the individual employee, and select the Edit Employee option.
3. Select Payroll Info from the left-side menu.
4. Select Taxes and TD1… in the top-right corner.
5. Enter the correct amount in the Federal TD1 field.

The employee would have to use the TD1-WS above to calculate their TD1 basic amount and provide to you the updated TD1 for you to enter into QuickBooks Desktop.

Manually update in QuickBooks Payroll

1. Select the Employee tab.
2. Select the individual employee to update.
3. Select the edit pencil next to option two, Edit the tax withholdings.
4. Edit the Federal and Provincial tax claim amounts as required.
5. Select Done.