Question
How do I support my employees when they're setting up their tax information in Jane Payroll?
Answer
Jane Payroll asks employees to enter a few key fields when setting up their tax information. As a clinic owner or payroll admin, your role is to help employees find the right place in Jane, not to interpret or advise on their tax situation. If anyone is unsure what to enter, the safest step is always to refer them to a tax professional or the CRA's official forms.
Here's what employees will see when setting up their tax information in Jane Payroll:
- Federal Total Claim Amount: derived from the federal TD1 form
- Provincial Total Claim Amount: derived from the provincial TD1 form for the province where the employee works
- Extra Withholding: optional; employees can request additional tax be withheld each pay period
- Optional checkboxes for whether their income will be less than their claim amounts
📣 Heads up: The following fields are visible to Account Owners and Payroll Admins only and are not visible to staff members:
- Authorized Annual Deduction: enter the annual deduction amount authorized by the CRA for this employee. Only enter an amount if you have a valid CRA letter of authority.
- EI and CPP exemption options: select if a staff member is exempt from EI or CPP
Jane does not collect the full TD1 form. It only asks for the amounts employees derive from it. Accuracy matters, and employees should always check the linked CRA forms if they are unsure.
Supporting Information
Understanding TD1 Forms
TD1 forms tell employers how much income tax to deduct from an employee's pay. There are two forms:
- Federal TD1: applies to all employees across Canada
- Provincial TD1: specific to the province where the employee works
These forms list tax credits that reduce the amount of tax withheld. Most employees only use the Basic Personal Amount line, which keeps the process straightforward.
2026 Basic Personal Amounts
Most employees will enter the basic personal amount from their federal and provincial TD1 forms. The 2026 amounts are:
| Jurisdiction | Basic Personal Amount |
|---|---|
| Federal | $16,452 |
| British Columbia | $13,216 |
| Alberta | $22,769 |
| Saskatchewan | $20,381 |
| Manitoba | $15,780 |
| Ontario | $12,989 |
| New Brunswick | $13,664 |
| Nova Scotia | $11,932 |
| Prince Edward Island | $15,000 |
| Newfoundland and Labrador | $11,188 |
Employees can confirm these amounts using the CRA's official TD1 forms.
EI and CPP Exemptions
The Account Owner or Payroll Admin can select these exemptions for staff if they apply. These exemptions are uncommon, and employees should confirm them carefully.
CPP exemptions apply only if the employee:
- Is between 65 and 70 and has filed Form CPT30 with the CRA
Age-related exemptions (under 18 or over 70) are handled automatically by Jane.
EI exemptions usually apply only if the employee:
- Works for certain family-owned businesses that don't qualify for EI
- Is self-employed and hasn't opted into the EI program
- Has a CRA-approved religious exemption
If an employee is unsure whether they qualify for an exemption, they should check with a tax professional. These exemptions have implications for both employees and employers.
When Employees May Need to Look More Closely
Some situations require an employee to go beyond the basic personal amounts, such as:
- Being 65 or older
- Supporting a spouse or dependant
- Qualifying for the Disability Tax Credit
- Paying eligible tuition
- Providing caregiver support
- Having higher income that reduces their claim amounts
Clinic owners should not interpret these credits or determine eligibility for employees. If an employee has questions, refer them to the CRA forms or a tax professional.
What Happens If Employees Enter the Wrong Numbers
For employees: Incorrect TD1 amounts change how much tax is deducted during the year. If they overpay, they receive a refund at tax time. If they underpay, they owe the difference. There is generally no penalty as long as they pay what they owe when tax season comes around.
For employers: The risk for employers arises when EI or CPP exemptions are incorrect. If an employee is marked as exempt when they shouldn't be, the CRA may issue a Pensionable and Insurable Earnings Review (PIER). This is a request for the employer to review or correct past contributions.
Most employers resolve a PIER by providing context or paying EI or CPP amounts that were missed. There is usually no penalty if the employer responds promptly and corrects the issue. This is why employees should confirm exemptions with a tax professional if they are unsure.