What is a TD1 2019 personal tax credits return?
A TD1 form is a document issued by the Canada Revenue Agency (CRA). It allows employers to collect information relating to tax credits from their employees. Employers use this information to deduct the correct amount of tax from employees’ earnings when undertaking payroll tasks.
There are two types of TD1 forms – federal and provincial. Federal TD1 forms cover tax credits that apply to all Canadian citizens. Provincial forms, the abbreviations of which are followed by additional letters signifying the territory (such as TD1BC for British Columbia), are specific to individual jurisdictions.
TD1 forms are not submitted directly to the CRA. Instead, they are stored securely by employers for in-house use. It is a legal requirement for an employee to provide their employer with a TD1 if they start a new job or if their tax credit entitlements change (for example, if they become responsible for a dependant).
If you are an employee, the organization for which you work will provide you with an online link to the applicable form, either to a government webpage or a secure online portal hosting a tailored form.
Do all employees need to fill out TD1 forms?
All new employees, as well as existing employees that experience changes to their tax entitlements, must fill out a TD1 form and submit it to their employer. Failure to do so can result in hefty fines.
An employee should fill out a TD1 form, whether or not their employer asks them to do so, in the following circumstances:
- They start working for a new organization and will receive payment for doing so.
- Their circumstances change and they are able to claim tax credits that they have not previously specified.
- Their circumstances change and they are no longer entitled to receive credits they have been claiming.
- They move to a new province and, as such, are subject to different tax rules.
- They wish to increase the amount of tax on regular income from their employer to account for tax on other earnings (so that they don’t need to pay a lump sum when they submit their annual income return).
Depending on the tax credits they intend to claim, individuals may need to fill out additional forms, all of which are available online. For instance, claimants need to complete a T1213 for childcare and employment expenses (among other things).
What tax credits are employees entitled to in 2019?
You will find all tax credit amounts in the TD1 2019 document. Worksheets are provided to help claimants navigate the form and determine how much they are entitled to.
The main tax allowances for 2019 are as follows:
- Basic personal amount – $12,069
- Caregiver amount for infirm children aged under age 18 – $2,230
- Amount for individuals aged over 65 with net income lower than $37,790 – $7,494
- Pension income amount (maximum claimable amount) – $2000
- Disability amount – $8,416
Allowances for students paying more than $100 in tuition fees and individuals supporting spouses, common-law partners, relatives, and infirm dependents are also included in the TD1 2019 form.
Use PandaDoc to create and distribute an electronic TD1 2019 form
If you’re thinking about creating your own TD1 form for 2019, PandaDoc can help.
PandaDoc offers a free fully-customizable TD1 2019 form which is suitable for organizations of all sizes. It can be hosted online and synced with a backend database for the secure storage of employee information.
Subscribe to a free trial of one of PandaDoc’s plans to see if it’s a fit for your business.
Useful Links and Resources
FAQ
Can employers create their own TD1 form?
If they wish to do so, employers may create their own TD1 form. The form must mirror the official TD1 for 2019 issued by the CRA, include a mechanism for identity verification (such as an employee login), and certain regulations must be met in regards to the storage of sensitive employee data.
There are several benefits associated with this approach. First, organizations that create a custom form can host it securely online. This eliminates the need for employees to print off TD1 forms and complete them manually.
Second, it’s possible to sync a digital form with the database that stores tax information. This reduces the burden of manual data entry and saves significant amounts of time. All data will be accessible immediately for relevant accounting tasks.
Finally, documents can be stored securely online, in accordance with CRA guidelines on record retention, and can be made available upon request.
As an employer, do you need to provide TD1 forms to your employees?
If you are an employer, you have two options when it comes to collecting TD1 forms. The first option is to send employees a link to the webpage that hosts the official TD1 form (you should do this for both the federal and the provincial form). You should not provide employees with paper forms. This regulation was introduced in 2020 but also applies to the TD1 form for 2019.
Alternatively, you can create a form that mirrors the government-issued TD1 form and self-host it, either on your own servers or using a third-party service like PandaDoc.
If you opt to send your employees a link to the government webpage, they will have to download and print the form themselves before sending you either a printed or scanned copy. You will then need to add the information to a database manually.
Providing a form that’s accessible via an online portal streamlines the process of data collection. Information submitted by employees will be added to your database automatically, where you access it quickly when you conduct payroll and accounting tasks.
