CD 2002-012: Information Notice to Employees

Deductions at Source of Additional Income Tax for Employees

The purpose of this notice is to provide you with information about deductions at source of additional income tax and how to approximate the amount of additional income tax you may want deducted at source.

If you are an employee who works in a province other than the one in which you reside, you may owe income tax upon the filing of your income tax return. Additionally, if you have another taxable income source other than the taxable income paid to you by your employer, you may also owe income tax upon filing your income tax return. If you feel that you may owe income tax upon filing your income tax return, you may want to have additional income tax deducted at source.

Additional Federal Income Tax Deductions

If you wish to have additional federal income tax deducted at source, you may do so by completing the pertinent section of the form Federal TD1 "Personal Tax Credits Return". The amount you indicate on this form is the additional amount that will be deducted each pay period. Additional Federal tax deductions authorized by the completion of this form will remain in effect until you provide your Compensation Advisor with an amended Federal TD1. This form is available from the Canada Customs and Revenue Agency Tax Services Offices and at the following Internet address: Forms listed by form number

Additional Quebec Income Tax Deductions

If you are a resident of Quebec and wish to have a specific amount of Quebec income tax deducted at source, you may do so by completing the pertinent section of the form TP-1015.3-V Source Deductions Return. The amount you indicate on this form is the additional amount that will be deducted each pay period. Quebec tax deductions authorized by the completion of this form will remain in effect until you provide your Compensation Advisor with an amended TP-1015.3-V. This form is available from the Ministry of Revenue Quebec offices and at the following Internet address: TP-1015.3-V

Estimating the Amount to Deduct as Additional Federal or Quebec Income Tax

To estimate the amount of additional tax to be deducted if you are currently working in a province other than that in which you reside or you had other taxable income from sources other than your employer which you continue to receive, you should base your estimate on the amount of money you owed the previous year upon the filing of your income tax return. Divide this amount by the number of pay periods remaining in the current year.

To estimate the amount of additional tax to be deducted if your place of employment changes during the current year to a province other than that in which you reside, you should compare the amount of tax that was deducted on your pay stub that was issued prior to working in the new province of employment to the amount of tax that was deducted on your pay stub while working in the new province of employment. If the new tax deduction amount is less than the previous tax deduction amount, you may wish to request that an additional amount of income tax be withheld.

Any request for information regarding the foregoing should be addressed to your Compensation Advisor.