Canada | How do I change an employee's tax status during the tax year?

Canada | How do I change an employee's tax status during the tax year?

There is no fixed limit on the number of tax slips (e.g., T4s) an employee can have in a single tax year.

Changing a tax status during the tax year, will result in the employee being taxed on year to date earnings based on the new tax status. Therefore, should an employee’s tax status change, you should terminate and reinstate the employee starting a new tax record.

Step 1: Terminate the employee's record on the old tax status.

      Navigate > Employee > Basic Information > Tax Profile
      Old tax status
      

      

Step 2: Reinstate the employee Starting A New Record on the new tax status.

      Navigate > Employee > Basic Information > Tax Profile

      
      New tax status