More than one employer: update TD1 before year-end surprises

An employee completes a TD1 when starting with an employer. When someone has more than one employer at the same time, personal tax credit amounts generally cannot be claimed again if they were already claimed on another TD1.

What the CRA form instructions say

Where total income will exceed the credits already claimed, CRA instructs the employee to enter 0 on line 13 of the later TD1 and check “More than one employer or payer at the same time.” The employee gives the TD1 to the employer, not to CRA.

Why year-end review still matters

Each employer withholds using its own payroll facts. The employee should review all T4 slips and the final tax return; overpayments or shortfalls are reconciled through that return.

• Ask the employee for a new TD1 when required; do not complete it for them.
• Keep the signed/current TD1 with payroll records.
• Do not promise that payroll withholding equals the employee’s final personal tax.