TD1 form

What the form does

The TD1 tells your payroll how many personal tax credits the employee expects to claim, which in turn sets the starting point for income tax withholding. It is not a tax return, and the CRA does not process it. The employer reads the total claim amount, uses it with the payroll tables or calculator, and keeps the form on file. The employer does not send a copy to the CRA.

The TD1-WS worksheet helps an employee work out partial credits. They keep it and do not hand it to you.

Who completes which form in Ontario

Every employee completes the federal TD1. An employee in Ontario who claims more than the basic personal amount also completes the provincial form, the TD1ON. The federal form for pay received on or after January 1, 2026 is the 2026 version, so a form left over from an earlier year is the wrong one to rely on.

Employees generally do not need a new form every year. A new one is needed when they start with you, when their credit amounts change, when they want more tax withheld or when they want to claim the prescribed zone deduction. After a change in circumstances that is expected to change their credits, the employer should have the new form within 7 days.

Two jobs, no form and forms that look wrong

If an employee has more than one employer at the same time and has already claimed the credits on another TD1, they cannot claim them again. In that case they tick the box for more than one employer or payer on the second page and enter 0 on line 13, leaving lines 2 to 12 blank.

If an employee does not provide a form, you withhold using only the basic personal amount, but you still choose the correct tax tables and remit on time. The employee can face a late-form penalty of $25 a day, with a $100 minimum and a $2,500 maximum. If you believe a TD1 contains false information, the CRA says to deduct tax allowing only the basic personal amount. Knowingly accepting a false form is a serious offence.

An illustrative example

Suppose a part-time employee in Hamilton already works for a retailer and starts a second weekend job with you. Their total income from both jobs will exceed the credits they have claimed. They give you a TD1 with 0 on line 13 and the multiple-employer box ticked, so your payroll does not apply the personal credits a second time. This is a simplified illustration, not payroll advice.

If you collect forms electronically, the CRA expects the version to mirror its form, include a certification, be unalterable once submitted and carry a date, with a way to authenticate who submitted it.

What to discuss with your accountant

Common problems are forms from prior years, a missing provincial form, no process for the 7-day update and forms stored only in an email thread. Ask who reviews each form for reasonableness before it is entered, and how your payroll provider stores the data.