Form TD1

A TD1 is the Canadian personal tax credits form employees complete so payroll can set up income tax withholding.

In practical payroll workflow, this is an onboarding and maintenance form. It tells payroll which claim code or tax-credit setup to use going forward. It is not a year-end document and it is not a pay-stub summary.

Why It Matters

TD1 matters because payroll relies on it when an employee:

• starts a new job
• changes the tax-credit information that affects withholding
• asks why income tax withheld changed between pay periods
• needs payroll to apply the correct federal and provincial or territorial setup

Employers are also expected to keep completed TD1 forms on file. In Quebec, payroll usually pairs the federal TD1 with the provincial Revenu Quebec form rather than relying on one document alone.

Where It Appears In Payroll Workflow

TD1 appears before the payroll run uses income tax settings. In practice, payroll teams may:

• collect the employee’s federal and provincial or territorial TD1 information
• convert the claimed amounts into claim-code or payroll-system settings
• update withholding when the employee gives a revised form
• retain the form as part of payroll documentation

That makes TD1 a payroll input document.

Practical Example

An employee joins a company in Ontario. During onboarding, payroll collects a federal TD1 and an Ontario TD1, then uses those forms to set income tax withholding before the first pay run.

The forms influence what appears on later pay stubs, but they are not the pay stubs themselves.

Related Terms

• Source Deductions
• T4
• W-4
• Employee Withholding
• Pay Stub
• Payroll Documentation