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April 23, 2019
Question

How do I set up First Nation employees that don't have taxes of CPP taken off for payroll?

  • April 23, 2019
  • 2 replies
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2 replies

AddieC
April 24, 2019

Hi there, 

 

It's important that you're able to accommodate all of your employees so that they're omitted from paying particular taxes that don't apply to them. Don't worry, QuickBooks Online makes this process easy. 

 

To add a new employee, click the Employees tab on the left navigation menu, and click Add an Employee. The first step involves setting up the employee TD1 form. Click this section to edit, then scroll down to the bottom of the TD1 until you see "Tax Exemptions". Expand the drop-down menu and check off the box for "Canada Pension Plan (CPP)". This will make the employee exempt from paying CPP. 

 

That's all there is to it. If you have any other questions, please don't hesitate to ask. 


Have a great day!

June 18, 2020

what about regular taxes, they don't have to pay taxes period..they can choose to pay into CPP but what about TAx, I need to exempt tax..

September 13, 2021

QuickBook online team does not know how to do it.


@leebrendalee wrote:

what about regular taxes, they don't have to pay taxes period..they can choose to pay into CPP but what about TAx, I need to exempt tax..


 

April 26, 2019

When you choose which box the income goes in on the T4 form, while setting up your payroll item, if you choose Box 68, 69, 71 or 88, the item should then be recognized as exempt income.

 

Just to be sure you are not exempting income earners that should not be exempt, make sure you are filling out the TD-1N.  There are quite a few situations where First Nations employees are not exempt from income tax and CPP.

 

https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/td1-in/td1in-18e.pdf