Why is the 2020 Federal TD1 basic claim amount in QBO incorrect? QBO standard payroll shows the amount $12,298. The CRA TD1 shows $13,229

Hello laurriemoline,

This is a great question. You have a good eye for detail and it's good to keep on top of these payroll calculations. I can explain what's happened.

QuickBooks Online's payroll service relies on calculations from the Canada Revenue Agency. Each time there's an update, QuickBooks receives the information so that our engineers can code it into our system. The major updates typically happen at the end of the year and halfway through the year.

This time around, the CRA released an update after the December update we received. That one hasn't yet been coded into our system yet, which is why you're seeing the TD1s with the old $12,298 amount.

Here's what you can do: you can either update the TD1 amount manually or leave it. Leaving it will mean that the calculations will be different, but the CRA will work that out for the employee during next year's filing. If you'd like to be sure exactly how leaving it will impact the payroll in terms of calculations, I recommend contacting the CRA for more details.

Don't be afraid to reach out if you need clarification from the QuickBooks side of things. I'm here to help!