How do you set up the proper percentage of income tax to come off of an employee payroll cheque?

Hi linda168.

Having the right taxes deducted from your employees paycheque is crucial to keeping an accurate payroll run. I'd be happy to help go over how income tax is deducted.

The percentage of income tax that is deducted is based off of the TD1 amounts that you have set up for each employee. How much each person gets paid also impacts what the percentage is. The higher the pay the higher the tax bracket that you're put in and the higher the percentage used. To check the TD1's you'll need to go to Payroll>Employees>Select an employee>Edit Employee>In section 2 select enter TD-1 form.

Once those are verified as correct your payroll will run as it should with the correct tax amounts.

If you have any questions let us know and we'd be happy to help.