Provincial Tax Exemption

Hi cmurph25, the option to exempt an employee from provincial tax directly is currently unavailable. In the Taxes and TD1 window, there's only a single checkbox for Federal Income Tax.

In QuickBooks Desktop, that checkbox controls both federal and provincial income taxes. If you uncheck it, the system stops deducting all income tax, which isn’t what you want since federal tax still needs to be collected.

Because there’s no separate provincial checkbox and the internal tax tables are locked for compliance, the only way to automate this is the workaround you were hoping to avoid. In the same Taxes and TD1 window, enter an extremely high amount, such as $9,999,999.00, into the Provincial TD1 field.

This is one of the most reliable ways to have the system calculate zero provincial tax while still handling federal tax. You can also consult an accounting professional, so they can suggest any other compliant alternatives that might work for your situation.

Please feel free to reply if you have any further concerns.