[Canada] Add or edit employee payroll tax details

Changes to an employee’s payroll tax profile reflect on the next pay period. Ensure each employee’s Tax Details page is complete and up to date, as it may affect their payroll calculations and deductions.

Wave automatically calculates applicable taxes, Employment Insurance (EI), Canada Pension Plan (CPP), and Second Additional Canada Pension Plan (CPP2) amounts based on the tax information you entered.

Taxes are calculated based on the province the business is located in, not where the employee lives.

Add an employee’s payroll tax details

Edit an employee’s payroll tax details

Add an employee’s payroll tax details

When you add a new employee to your payroll, enter their tax details using the federal and provincial or territorial TD1 forms they completed. Learn more about TD1 forms. To enter an employee’s payroll tax details:

1. On the left-side menu, click Payroll > Employees.
2. Click the name of the employee.
3. Click Tax Details.
4. Fill in the required details. If your employee is exempt from CPP contributions, see mark an employee as exempt from CPP.
5. Click Save.

Edit an employee’s payroll tax details

If an employee’s payroll tax details change, you can edit them at any time. To edit their tax information:

1. Open their employee profile.
2. Click Tax Details.
3. Update the required information.
4. Click Save.