Typically, your employees let you know if their circumstances have changed. They are handing in new TD1 forms to you if

1. They start a New Job
2. They have changes in personal circumstances like marriage or anything that has impact on their personal claim amounts

TD1s and the new Tax Year

What ZonePayroll does automatically

📅 1st JANUARY: system creates new tax year profiles:

•  
  • Where there was a profile in the previous year
  • where it is the basic claim amount
  • or when there is more than personal claim amount and the provinces uses indexing

✅ No action required if employee has no changes

Most employees should claim the same amounts they claimed the previous tax year. You do not need to action anything for this group. When the old tax year ticks over into the new tax year (1st JAN of every year) - the system automatically creates new employEE tax profiles for all active employees in the system based on the updated provincial and federal tax, provincial uplifts, updated thresholds. 

📅 Input new TD1s for employees that handed in new TD1s

You only need to CREATE NEW TD1s received for the new tax year in ZonePayroll (see below how it works). 

✅ By default, the system will always apply the basic federal and provincial claim amounts for every employee unless you add data!

Best Practice End-Of-Year actions

Send out Communications to your EmployEEs

1.  In December, send out an email to your employees describing the tax changes for the new tax year and asking them to hand in any updates TD1s if they have changes to those. It is best to make sure to get all updated profiles before your first pay run of 2025 is scheduled. This practice helps avoiding any corrections later on.
2. Send out a reminder: Before your first pay run of new tax year - send out a reminder to your employEEs asking them to hand in any updated TD1 forms. Do this so it suits your pay run schedule.

Input new tax year TD1s

Make sure to create a NEW TD1 record reflecting new information every time an employEEs claim changes. (Do NOT edit an existing employee TD1 information as this will not have the desired impact in the system)

When making new tax year changes, all employees that already have a tax profile from previous tax year and are claiming the personal amount are automatically set up on 1st JAN of every year.

If employees change their personal claim amounts above the basic claim amounts, you will need to update those employees as described below.

In this case, both federal and provincial claim amounts need updating in ZonePayroll. Read the step by step guide to see how you do that.

👁️ View List of Current TD1 Profiles

If you want to see a list of current TD1s you have created for your employees, you do this via:

1. Search Bar: Search > Type TD1 > Click Page: CA TD1 
2. Navigation:Payroll Administration > Canada 🇨🇦 > Page CA: TD1: List

Both ways lead you to a list of existing TD1s for your employees and the corresponding tax year

✍️ Create new tax year TD1s

The easiest way to create a new TD1 for an employee (after you received a new tax year change) is to navigate via:

Payroll Administration > Canada 🇨🇦 > TD1: List (click)

You will then see the list of all your employees and their TD1 data as a summary

If an employee has sent in new TD1 data for the new tax year, please click on the NEW CA TD1
 

You will then see the CA TD1 Page

Next, make your selections as shown in the screenshot above:

1. Select employee
2. Select Tax Year the claim amounts apply for
3. Add signature date
4. If this employee only claims the basic personal amount, click save (the system defaults to the basic personal amount for the selected tax year if no other claims are added)

   • Provincial basic claim amount 

     ℹ️ If you are entering only the basic personal amount in the federal TD1 form, the corresponding provincial TD1 claim amount will automatically be applied! 

5. Tick all boxes that apply
6. 👉 Click save ✅
7. After you click save and you have added employee claims above the basic claim amounts, you need to add the corresponding provincial claim amounts

Adding Provincial TD1s above basic personal amount

You only need to input provincial amounts if the employee claims above the basic claim amount. After you have clicked save for the federal TD1 data, you then need to click on "Add TD1 + Province Indicator button. For Alberta the button looks like "Add TD1 AB", for British Columbia the button is "Add TD1 BC" and so forth.

The form opens > add the provincial claim amounts to the form and click "SAVE" to finish up setting up the employee TD1 data for those who are claiming above personal claim amount.

 ℹ️ 📅 We input the new tax year thresholds, rates, uplifts and personal claim amounts after they have been published by the CRA in our Canada End-Of-Year release regularly between 15th and 31st December. If you try create a new tax year TD1 before the system has been updated, you will receive an error message. Please try again after you have been notified of the Canadian End-Of-Year release. At this stage you will be able to change your employee's claim amounts for the new tax year.

Go through all the changes that your employees notified you of in their new tax year TD1s they sent in by creating New CA TD1s of all applicable employees.

NO need to change anything for employees that have no changes to their personal claim amounts and are claiming the basic personal amounts. These profiles will be created automatically.