We are very new company, and last year was the first year we had employees, I went on the CRA website to print off 2012 TD1 & TD1AB forms for new employees and i noticed that the 2011 and 2012 tax amounts are different, am i suppose to change my 2011 employees tax deductions to the new 2012 amounts? and do i have to update this every year?
Hi: Yes. Every year you must print off the new TD1's and have your employees fill them out and give back to you. You then must change the amounts in each of the Employee records.
The good news is that you don't have to change each employee manually & one at a time. Go to Maintenance > Update Employee Claims. A window will open with all employees listed and the Federal button lit. Click the box to select all employees and click "Update Basic Personal Amount" button. Next click the Provincial button and select your province. Select all employees and click the "Update Basic Personal Amounts" button and you're done!
If your employees have other claims (disability, spousal, etc.) you have to update them one at a time to include those differences using the section below the Basic Personal Amounts we just did. The easiest way here is to determine the amount of the change (say it went up $150.00) and select the employee that it affects and put the change amount in the box at the bottom of the window. Click the "Update Other Indexed Amount" button and you're done.
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