Why does Quick Books Payroll set the federal tax exemption at $12,298? The 2020 TD1 for has the basic personal amount at $13,229?

Hi there, 

You've come to the right place for help. I'd be happy to help answer your question and steer you in the right direction. 

QuickBooks works according to the rules and regulations of the CRA. Based on the CRA, the TD1 forms for 2020 for pay received on January 1, 2020 or later have an amount of $12,298. You can check out this link here for more info. 

If you have further questions, don't hesitate to contact our support team using this link here. 

Good Question and looking for a response.  The company hires employees on a short term basis and I have no idea what they will earn in a year from other companies.  Should I use what Quickbooks has defaulted to Federal $12,298 or $13,229?  There are some full time employees as well who will not make over $150K.  

Another question - since I have paid some employees using the default of $12,298 and this is incorrect - how do make the correction on their next cheque?  DB what CR what?  It means too much was taken off their taxes.