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user34134
January 13, 2020
Question

Why does Quick Books Payroll set the federal tax exemption at $12,298? The 2020 TD1 for has the basic personal amount at $13,229?

  • January 13, 2020
  • 3 replies
  • 0 views
Original commenter did not share additional details

3 replies

J
JamesM
January 14, 2020

Hi there, 

 

You've come to the right place for help. I'd be happy to help answer your question and steer you in the right direction. 

 

QuickBooks works according to the rules and regulations of the CRA. Based on the CRA, the TD1 forms for 2020 for pay received on January 1, 2020 or later have an amount of $12,298. You can check out this link here for more info. 

 

If you have further questions, don't hesitate to contact our support team using this link here. 

G
GP user
January 14, 2020

 

The original poster is correct, the federal TD1 amounts HAVE changed since the December 12, 2019 release. See below;

T4127(E) Rev. 20/01

https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan/t4127-jan-payroll-deductions-formulas-computer-programs.html#toc0

 

 

    A
    All about Bookkeeping
    February 12, 2020

    Good Question and looking for a response.  The company hires employees on a short term basis and I have no idea what they will earn in a year from other companies.  Should I use what Quickbooks has defaulted to Federal $12,298 or $13,229?  There are some full time employees as well who will not make over $150K.  

    A
    All about Bookkeeping
    February 12, 2020

    Another question - since I have paid some employees using the default of $12,298 and this is incorrect - how do make the correction on their next cheque?  DB what CR what?  It means too much was taken off their taxes.

    AddieC
    AddieC
    February 12, 2020

    Hi Tanya2, 

     

    I know how important it is to make sure all of your numbers are correct according to bookkeeping regulations for your business. It's essential that you consult an accountant for the best resolution here. 
     

    If you're not already connected with an accountant, you can find one in your area here: Find an accountant. 

    I'm confident the accountant will be able to give you the best possible advice. 

    A
    All about Bookkeeping
    February 13, 2020

    Sorry but this answer is unacceptable. Contact an accountant?  I am the accountant. This is a big mistake on QB part and all Canadian uses must be notified. 

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