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BradleyB
May 14, 2019
Question

canada income tax deduction for students

  • May 14, 2019
  • 1 reply
  • 0 views

I have a summer student who checked the "total income less than total claim amount" bo x on his TD1.  How do I set him up so that he has no income tax deducted from his pay?

1 reply

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LauraAB
May 14, 2019

Hi BradleyB,

 

It's awesome to hear that you've got a summer student working with you. I hope they turn out to be a great asset for your business!

 

Changing the TD1 information in QuickBooks Desktop is an easy process. Just follow these steps.

  1. Click Employees in the top menu and choose Employee Centre.
  2. Click New Employee to begin setting the student up or double click their name in your employee list if you've already started.
  3. Go to the Payroll Info tab.
  4. Click the Taxes and TD1 button at the top right of the New/Edit Employee window.
  5. Ensure you have the correct province selected and change the information accordingly.
  6. Hit OK to save the TD1 information.
  7. Click OK to save the employee profile.

You should be good to go. If you're not certain which boxes on the TD1 window you need to change, check in with the CRA or an accountant. We can even help you find an accountant familiar with QuickBooks Desktop. Use your postal code in the Find a ProAdvisor page to find QuickBooks-savvy accountants in your area. Check out the Contact information page on the CRA to learn how to get in touch with them.

 

I'm here if you have further questions. :)

B
BradleyBAuthor
May 14, 2019

Thanks Laura,

I am sorry to say that your answer did not help.

To clarify my question, it is as follows: Is there a way to set up an employee so that there is no income tax deducted from his pay?  If so, how do I do it?

Brad

 

    L
    LauraAB
    May 14, 2019

    I see what you're saying. I recommend confirming the following details with an accountant to make sure this is correct and what you need to do, but it is possible to zero out the numbers on the TD1 and also on the pay cheque itself for the Federal calculation. When you run payroll, it's possible to manipulate the numbers in the Employee Summary section if necessary, which is where you can change the Federal Income Tax calculation if necessary.

     

    If that's still not quite what you need, consulting an accountant familiar with the program is ideal as they'll have an idea of how it can be manipulated to meet your needs.

     

    [Edited]

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