Canadian Payroll Compliance Legislation Exam Practice With Complete Solution

Canadian Payroll Compliance Legislation Exam Practice With Complete Solution The Personal Tax Credits Return - TD1 (Federal) is completed by an employee who: - - has a new employer or payer and is receiving salary, wages, commissions or any other remuneration - wishes to increase the amount of income tax deducted at source - wishes to claim the deduction for living in a prescribed zone - has changes in the personal tax credit amounts previously claimed on a TD1 The information on the TD1 is used by the employer or payer to: - Determine the amount of federal and provincial/territorial income tax to deduct from an individual's employment income or other income such as pension income. The Worksheet for the Personal Tax Credits Return - TD1-WS is used to calculate partial claim amounts on the TD1 for: - - age - caregiver - infirm dependant age 18 or older In what situations would an employee complete the federal Worksheet for the Personal Tax Credits Return - TD1-WS? - To calculate partial claim amounts for age, caregiver and/or infirm dependant age 18 or older. When does the claim code on the employee's federal TD1 have to match the claim code on the provincial/territorial TD1 - When a non-resident employee has a claim code of 0 on their federal TD1. Applicable provincial/territorial tax rate: the employee works at the employer's premises - The province/territory where the premises is located. Applicable provincial/territorial tax rate: the employee does not work at the employer's premises - The province/territory of the employer's office from which the employee is paid Applicable provincial/territorial tax rate: the employee does not work at the employer's premises and paid from employer's location outside of Canada. - Employee does not pay provincial/territorial tax but is taxed using a tax rate for employees working in Canada beyond the limits any province/territory or outside Canada. Renumeration subject to income tax - Earnings plus taxable benefits Tax deductible amounts subtracted from gross/pensionable earnings - - employee registered pension plan contributions - employee RRSP contributions - union dues (except Quebec) - deductions for living in a prescribed zone (as claimed on employee's TD1) - deductions authorized by CRA