At a glance
- The TD1 is the form an employee fills out to tell you which tax credits they claim. It decides how much income tax you withhold.
- There is a federal TD1 and a provincial one. PayCub uses both.
- You enter them on the employee's first pay stub, and they carry forward until you change them.
Entered on the first pay stub
TD1 amounts aren't part of employee setup. The first time you run payroll for a new employee, PayCub asks for their federal and provincial TD1 before generating the stub. Check them carefully: once the stub is saved, the tax withheld on it is part of the record.
Carried forward automatically
From then on, every pay run uses the same TD1 settings. You don't re-enter them each time.
When an employee's situation changes
If an employee gives you a new TD1 (for example after a new dependant or a change in their spouse's income), update it on their next pay stub. The new amounts become the default from that point on.
Employees have to tell you. PayCub keeps using whatever is on file. If an employee mentions a life change that affects their credits, update their TD1 then, not at year-end.
For what the form is and why it matters, see our TD1 form explained guide.