Guide to Global Payroll Management

AUTHORIZATION FOR HIRING
The commencement form is essential when the payroll is administered by someone other than
the person who does the hiring. Larger organizations will usually have a human resources
department that has been authorized to coordinate or confirm all hires. In some cases, a
foreman or superintendent at a job site may be authorized to hire employees. In smaller
companies, the general manager or office manager may be the only person allowed to make
that commitment.
In any case, the payroll department must have a predetermined list of the employees who are
authorized to hire and must accept only the commencements (authorizations for hiring) signed
by a designated employee.
As all commencement forms require specific information about an employee, an all-inclusive
form is usually provided which also contains a checklist for the benefit applications and
authorizations. These commencement forms will vary in content with each employer.
TD1 (FEDERAL AND PROVINCIAL) AND TP-1015.3-V FORMS
Employees are entitled to a federal tax credit based on 15% of the year's basic personal amount
$13,229 for the 2020 calendar year. There is also a provincial tax credit that varies from
province to province (and is found on the applicable provincial TD1). In the province of Quebec,
the credit is the year's basic personal amount of $15,532.
Employees who do not complete and submit a TD1 (federal/provincial)/TP1015.3-V are
considered to be claiming the basic personal amount only. An employee may also claim
additional eligible amounts on the TD1 (federal/provincial)/TP1015.3-V that can reduce the
amount of tax they have to pay at source. Other amounts that may be claimed include amounts
for supporting dependents such as a spouse, amounts for being over age 65, collecting a
pension, being disabled or being a student who is paying tuition.
Once the TD1 (federal/provincial)/TP1015.3-V form is completed, the employee totals all of the
amounts they are claiming to arrive at a total claim amount. Each total claim amount falls into a
range having a corresponding claim code number or letter.
The claim code is essential in determining the employee's tax liability when using the federal
and provincial Payroll Deductions Tables or, for Quebec employees, the Quebec Source
Deductions Tables.
The TD1 (federal and provincial)/TP1015.3-V are useful to the employer because they provide
the employee's name, address, social insurance number and date of birth.
It is the employee's responsibility to ensure the TD1 (federal/provincial)/TP1015.3-V is filled in
correctly, but the employer should review the form to ensure:
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the employee has used the correct amounts as specified on the form
the amounts being claimed are correctly totaled
the form doesn't contain any obvious false statements
the social insurance number is valid

Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020

Guide to Global Payroll Management - 2020 - 11-14

Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020