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1.5. TD1 Claim Amounts are different from published Basic Exemption amount (Canada)
Problem: After applying a tax update, the TD1 Claim amounts (federal or provincial) for some employees differ slightly from the published Basic Exemption amount.
Solution: This is most likely the result of indexing the TD1 value year after year. The Canada Revenue Agency guide T4127 "Payroll Deductions Formulas for Computer Programs" lays out a method for updating the prior year's TD1 Claim amounts for the new year. However, the process is inexact. After updating through multiple years, small differences can "creep in".
In theory, a new TD1 slip should bbe filed annually by each employee. This will keep TD1 Claim amounts up to date for all employees. Until an employee files a new TD1 form, however, you should be able to rely on the updated TD1 claim value calculated by the software.