How Are TD1 Forms Assigned? | Collage Help Center

The goal of this article is to explain how TD1 forms in Collage work, and how locations in Collage affect the way TD1 forms are assigned.

What are locations in Collage?
How do locations affect TD1 forms?
How do I properly assign TD1 forms?
How do I assign TD1 forms for remote employees?

What are locations in Collage?

In Collage, you can have default company locations. By default, you will have a location which was set when your company was created on Collage, and you can include multiple locations for multiple offices:

When you hire an employee on Collage, you will be asked to choose a location for them.

How do locations affect TD1 forms?

The province of the location you select determines which TD1 form is assigned to that employee. For example, if you set the employee's location as Ontario, they will receive an Ontario TD1 form when they are onboarding.

How do I properly assign TD1 forms?

The CRA deems that employees should be taxed based on either the permanent establishment they physically report to, OR the location of the permanent establishment from where their salary is paid.*

In other words, taxation is based not on where the employee lives, but where the employee works or reports to.

Below are three scenarios to help illustrate the way in which province of employment is determined:

Scenario	Province of Employment	Other Tax implications	Tax Filling
Employee lives in Alberta and works remotely for an employer with a permanent establishment in Alberta	Employee should complete the Alberta TD1	None	Employee would file personal income tax in Alberta.
Employee lives in Ontario but reports to work in a physical building in Quebec	Employee should complete the Quebec TP-1015.3-V form (TD1 equivalent)	Employee is also subject to QPP, EI (@QC rate) QPIP and their wages would be subject to HSF, WSDRF, CNT, CNESST. They would receive a T4 and RL-1.	Employee will file personal income tax in Ontario. Any differences in payroll tax will be adjusted upon assessment.
Employee lives in Alberta but works remotely for an employer with a permanent establishment in British Columbia**	Employee should complete the British Columbia TD1 form	Employee wages would be subject to BC Health tax	Employee will file personal income tax in Alberta. Any differences in payroll tax will be adjusted upon assessment.

Please note this is a basic summary and should not be used in isolation of the detailed guidelines.

How do I assign TD1 forms for remote employees?

In Collage, you can create an additional location, for example, Calgary – Remote, to identify an employee working remotely from Alberta. However, when no permanent establishment exists in Alberta, you would want to enter the address of the permanent establishment to generate the correct TD1 forms and province of employment, as illustrated below.

If you need more information, the experts on the Payroll team would be happy to help. Otherwise, seek additional advice from a tax professional or call the CRA (or RQ).

*The location from where a third-party service provider processes the employee’s payroll is not a factor in determining province of employment.
**Note that in some cases where a sales employee has the authority to contract work on behalf of the employer from their home office, the CRA/RQ may consider it a permanent establishment. You can apply for a special ruling if you are unsure.