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Payroll Payment Date should be the date that you pay the employee, which may differ from the pay period ending date. The payment date is used to determine which payroll deduction formulas, rates and limits apply to the calculation, and is also determinative of the taxation year the payroll income will be included in for year-end T4 tax reporting. For example, if you pay an employee on January 4, 2021 for work that was performed in the monthly pay period ending December 31, 2020, the payment to the employee should be included in that employee's 2021 earnings (not 2020), and the applicable payroll deduction calculation formulas, rates and limits to be applied will be those that apply to payroll payments commencing January 1, 2021.
Select the appropriate Province or Territory of Employment from the list. This field is required - a blank field will not be accepted by the application, so you must select a valid Province or Territory from the drop-down list if a default selection is not displayed. A browser 'cookie' will be stored on your computer so that the same Province/Territory will be automatically selected as the default when you use the webTOD application in the future. Province of Employment determines which provincial or territorial taxes will be applied in calculating required payroll tax deduction withholdings. The Province of Employment is determined by where your employee physically reports for work at your establishment or "place of business". For details of how to determine the correct Province of Employment, please refer to CRA's guidance at the following url: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/set-up-new-employee/filing-form-td1/which-provincial-territorial-tax-tables.html
Select the appropriate Pay Period definition from the list. This field is required - a blank field will not be accepted by the application, so you must select a valid Pay Period definition from the drop-down list if a default selection is not displayed. A browser 'cookie' will be stored on your computer so that the same Pay Period definition will be automatically selected as the default when you use the webTOD application in the future. Pay Periods is the frequency that an employee will be paid. It is expressed as the number of pay periods that an employee will be paid for during a calendar year, and is used to estimate annual earnings and deductions relevant in the calculation of payroll tax withholding amounts.
Enter the amount of regular salary and/or wages to be paid for the current pay period. This field is required for Regular, Bonus & Retroactive Pay calculations, and the amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will cause an application error. If you are calculating the tax deductions for a Bonus or a Retroactive Pay Increase that is being paid as a lump-sum payment separately from the Employee's regular paycheque, enter the Employee's most recent regular salary/wages per pay period. This information is required to be able to properly estimate the Employee's annual taxable income and calculate the amount of tax deductions applicable to the Bonus or Retroactive Pay Increase.
Select the appropriate Federal Tax Credit Claim Code from the list. This field is required - the default Claim Code 1 (Basic Claim Amount) will be used if you do not select an alternate Claim Code. The Claim Code is based on the Total Claim Amount from the Employee's federal TD1 form which should be filed with the Employer. Select the Claim Code corresponding to the range within which the Employee's Total Claim Amount falls. Note that employers are required to obtain a completed and signed federal TD1 form from all employees, however a new TD1 form is not required each year if the employee's Total Claim Amount does not change from the previous year or if the employee is only claiming the Federal Basic Personal Amount.
Select the appropriate Provincial/Territorial Tax Credit Claim Code from the list. This field is required - the default Claim Code 1 (Basic Claim Amount) will be used if you do not select an alternate Claim Code. The Claim Code is based on the Total Claim Amount from the Employee's Provincial or Territorial TD1(P) form which should be filed with the Employer. Select the Claim Code corresponding to the range within which the Employee's Total Claim Amount falls. Note that employers are required to obtain a completed and signed Provincial/Territorial TD1(P) form from all employees, however a new TD1(P) form is not required each year if the employee's Total Claim Amount does not change from the previous year or if the employee is only claiming the Provincial/Territorial Basic Personal Amount.