Canada
United States
BahamasCanada
Form TD1, in plain English.
Form TD1, the Personal Tax Credits Return, is how a Canadian employee tells their employer which tax credits to apply when calculating income tax withholding. There is a federal TD1 and a provincial or territorial version, and most employees complete both on hire. Employers keep the forms rather than sending them to CRA. Workzoom applies the claimed credits on every pay run from the employee record.
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How Form TD1 works.
The TD1 determines withholding, not the final tax bill, which is settled on the employee's return. Employees complete a new TD1 when their situation changes, and the employer applies it from the next pay run. Where no TD1 is filed, the employer applies the basic personal amount only. Because federal and provincial forms are separate, an employee moving province mid-year needs a new provincial TD1 even though the federal one is unchanged, which is the detail most often missed on an internal transfer.
Where Form TD1 goes wrong.
- Employees with more than one job claiming the basic personal amount on every TD1 is the most frequent cause of a surprise balance owing, since each employer withholds as though it were the only source of income.
- The other gap is the provincial form on relocation, which quietly leaves withholding calculated against the wrong jurisdiction.
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In the product
How Form TD1 runs on Workzoom.
Form TD1 is part of the Workzoom Payroll Suite. Workzoom runs HR, workforce, and talent on a single employee record across ten countries: Canada, the United States, the Bahamas, Jamaica, Trinidad and Tobago, Barbados, Antigua and Barbuda, Anguilla, the Cayman Islands, and the United Kingdom. Full gross-to-net payroll runs live in Canada, the United States, and the Bahamas. Pricing starts at $4 per employee per suite per month.
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