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About Update TD1 Claim

Using the Update TD1 Claim window

Before you start

Before you use this function:

  1. Back up your data.
  2. Check the Canada Revenue Agency (CRA) publications to determine the factor or amount by which to increase employee tax credits. Be aware that CRA may increase tax credit claim amounts by both an indexing factor and an additional flat amount.
  3. Ensure that the following fields on your employee records reflect "before update" values correctly:
    • TD1 – Eligible Pension
    • TD1 – Tuition and Education
    • TD1 – Total Tax Credit

The existing values in the fields must be accurate because the payroll program uses these fields to calculate the new TD1 Total Tax Credit value.

To update income tax claims automatically for several employees

  1. Open Canadian Payroll > Tasks > Update TD1 Claim.
  2. Select the tax code that you want to process.
  3. In the Update By field, choose a method by which you will select employees for the update.
  4. Depending on your choice in the Update By field, enter the additional information required. For example, if you selected to update by class, enter the class and the class range.
  5. If you chose an option other than Set Criteria, enter the range of employees you want to update, in the Employee (From/To) field.
  6. In the Change By field, select whether to update by a cost of living factor (see (Cost of Living) Factor in the field list for more info) or by an amount increase/decrease.
  7. Depending on your choice in the Change By field, enter either the cost of living factor or the amount.

    Note: If entering a decrease amount, use a minus sign in front of the amount.

  8. When you have completed your employee selection and entered the factor or amount, click Update to make the changes to all the selected employees.

The payroll program automatically updates the TD1 – Total Tax Credit field (or TP 1015.3 V Line 10 field, if Québec) of selected employee records.

After making Updates

To verify that the modifications were made, print the Update TD1 Claim Audit report:

  • After the update process successfully completes, click Yes when a message asks if you want to print the Update TD1 Claim Audit report.
  • From Payroll Employee Reports, select Update TD1 Claim Audit.

The system updates the Last Maintained Date for each employee modified so printing the report for a range of last maintained dates is an effective way of verifying changes.