For more information about the Update TD1 Claim task window, read About Update TD1 Claim or Using Update TD1 Claim.
For descriptions of the fields on the Update TD1 Claim task window, read below:
Select the type of TD1 personal tax credit to update.
For example, to update the Ontario TD1 personal tax credit claims of employees, choose ONITAX. Or, to update employees' federal TD1 tax credit claims, select INCTAX.
Fields used to select employees
In the Update By field, choose a method by which you will select employees for the update.
When you choose a method, the program enables additional fields that are related to your choice. Enter the additional fields.
The options in the Update By field are:
- Employee Number. Choose this to update only employee numbers that fall within the range which you specify in the Employee From and To fields.
- Class. Choose this to update only the employees who have been grouped into a certain class. Choosing this option enables the Class field and the Class From/To fields, in which you enter the class and the range of class codes.
- Selection List. Choose this to update only employees that belong in the selection list that you specify in the Selection List field.
- Set Criteria. Choose this to update only employees that match selection criteria that you define. Choosing this option enables the button. Click the button to enter your selection criteria.
If you choose an option other than Set Criteria, you can further narrow the selection of employees by entering the Employee From and To fields.
In the Selection List field, choose a selection list that contains the employees you want to include in the update. (You create selection lists by using the Employee Selection window in Payroll Tasks.)
In the Employee From and To fields, enter the range of employee numbers that you want to select for the process. For example, to select employees 1 to 10, enter 1 in the Employee field, and 10 in the adjacent To field.
To select all employees, the Employee From field should be blank and the To field should be filled with ZZZZZZZZZZZZ.
When you choose an option in the Class field, the From Class and To Class fields let you specify a range of class codes within your selected Class.
To process all class codes, the From Class field should be blank, and the To field should be filled with all ZZZZZZ
If you choose Set Criteria as the method by which to select employees for processing, the button is enabled on the window.
Click the button to open a Set Criteria dialog box that lets you use virtually any field associated with employees to select a subset of employees for processing. For example, you may want to process only employees within a specific range of hire dates.
For help on how to set up criteria for selecting records, press F1 while positioned in the Set Criteria dialog box.
When you close the dialog box, the criteria you have set up, if any, are displayed in the Employee Criteria field of the originating window.
Fields used to specify the change
The Field column on both the Update Earnings/Deductions and the Update Taxes windows lists the names of the fields you can update for the earning/deduction or tax using an Update task or process. You do not make any changes in this column but instead it is for informational purposes.
In this field, indicate how you want to update the TD1 claim amount of selected employees, either by:
- Cost of living factor. If you select this option, you must also enter the Factor field.
- Amount increase/decrease. If you select this option, you must also enter the Amount field.
The cost of living factor is used to adjust the personal tax credit amounts that are reported in the employee's federal or provincial TD1 window and entered on the Taxes tab > Tax Info window of the Employee Payroll window. Canada Revenue Agency (CRA) publishes changes in the cost of living factor in its periodic taxation publication.
If you selected Cost of Living Factor in the Change By field, enter the factor (in the Factor field) by which to update the TD1 claim amounts of the selected employees. For example, a factor of 1.022 indicates 2.2%.
The system uses the value in the Factor field to adjust the tax credits subject to the cost-of-living factor and then modifies the net tax credit used to calculate payroll.
If you select Amount Increase/Decrease in the Change By field, enter the amount (in the Amount field) by which to update the TD1 claim amounts for selected employees.
If entering a decrease amount, enter a minus sign in front of the numeric amount in the same field.