{"id":479,"date":"2023-09-03T18:27:10","date_gmt":"2023-09-03T22:27:10","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/?post_type=chapter&#038;p=479"},"modified":"2024-11-21T00:53:10","modified_gmt":"2024-11-21T05:53:10","slug":"different-employer-more-paperwork","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/chapter\/different-employer-more-paperwork\/","title":{"raw":"Different Employer, More Paperwork","rendered":"Different Employer, More Paperwork"},"content":{"raw":"<span style=\"text-decoration: underline\">Importance of an Employment Agreement<\/span>\r\n\r\nWhenever there is a new employer-employee relationship, it is highly recommended that an employment agreement be in place.\u00a0 An employment agreement is legally binding and enforceable.\u00a0 It should clearly outline the terms and conditions of the employment relationship.\u00a0 Items in an employment agreement may include:\r\n<ul>\r\n \t<li>Job title<\/li>\r\n \t<li>Employee responsibilities<\/li>\r\n \t<li>Scheduled working hours<\/li>\r\n \t<li>Compensation structure<\/li>\r\n \t<li>Benefits provided<\/li>\r\n \t<li>Other details<\/li>\r\n<\/ul>\r\nThe employment agreement serves as legal protection for both parties.\u00a0 In the event that there are any disagreements or disputes, the employment agreement will usually be looked upon as the first point of reference.\r\n\r\nAn employment agreement is essential in establishing a clear and formal understanding between the employer and the employee.\r\n\r\nIt is recommended that one reviews also the collective agreement if a trades worker is signing up to be employed with a union.\u00a0 The collective agreement will outline in more detail the employee\u2019s rights and responsibilities, as well as any benefits that the employee may be entitled to.\r\n\r\n&nbsp;\r\n\r\n<span style=\"text-decoration: underline\">Tax Forms with New Employer<\/span>\r\n\r\nIndividuals must fill out the Form [pb_glossary id=\"1340\"]TD1 \u2013 Personal Tax Credits Return[\/pb_glossary] forms in the following situations:\r\n<ul>\r\n \t<li>Have a new employer or payer<\/li>\r\n \t<li>Want to change amounts from previous amounts claimed<\/li>\r\n \t<li>Want to claim the deduction for living in a prescribed zone<\/li>\r\n \t<li>Want to increase the amount of tax deducted at source<\/li>\r\n<\/ul>\r\nThis form is used to determine the amount of tax to be deducted from an employee\u2019s gross paycheck.\u00a0 All employers are required to make [pb_glossary id=\"1343\"]source deductions[\/pb_glossary] of income tax withholdings and remit the amounts to [pb_glossary id=\"654\"]Canada Revenue Agency[\/pb_glossary] on the employee\u2019s behalf.\r\n\r\nProvinces and Territories also have a corresponding TD1 \u2013 Personal Tax Credits Return to be completed at the same time.\r\n\r\nThese TD1 tax forms look pretty intimidating at first glance, but an employee can ask for assistance from the employer and Canada Revenue Agency if needed in completing the forms accurately.\u00a0 The Government of Canada also provides <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/payroll\/set-up-new-employee\/filing-form-td1.html\" target=\"_blank\" rel=\"noopener\">guidance<\/a> on completing the TD1 forms for both the employee and employer.\r\n<div class=\"textbox textbox--key-takeaways\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\">Tax Tip: <strong>Change in Tax Situation<\/strong><\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n\r\nTrade workers may have more frequent employer changes or multiple employers at the same time. Also, a trade apprentice\u2019s full-time student status may be different each calendar year depending on the timing of technical training levels.\u00a0 These employment status updates may change an individual\u2019s personal tax situation and available tax credits.\u00a0 It is recommended to review periodically and potentially complete an updated TD1 Form(s) with the employer, so that sufficient withholdings of income tax are deducted at source as you earn the income.\u00a0 From a planning and budgeting perspective, this will assist in reducing the likelihood of a surprise significant tax liability when the tax return is filed the following year.\r\n\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n\r\n<span style=\"text-decoration: underline\">Registration with Trades Training Authority<\/span>\r\n\r\nEach trades apprentice needs to be registered with the Provincial or Territorial Trades Training Authority for the particular trade.\u00a0 It is the trade apprentice\u2019s responsibility to also ensure that every new sponsoring employer has associated the apprentice\u2019s registration number to that employer.\u00a0 This is to warrant that work-based training hours can be recorded into the system towards certification.","rendered":"<p><span style=\"text-decoration: underline\">Importance of an Employment Agreement<\/span><\/p>\n<p>Whenever there is a new employer-employee relationship, it is highly recommended that an employment agreement be in place.\u00a0 An employment agreement is legally binding and enforceable.\u00a0 It should clearly outline the terms and conditions of the employment relationship.\u00a0 Items in an employment agreement may include:<\/p>\n<ul>\n<li>Job title<\/li>\n<li>Employee responsibilities<\/li>\n<li>Scheduled working hours<\/li>\n<li>Compensation structure<\/li>\n<li>Benefits provided<\/li>\n<li>Other details<\/li>\n<\/ul>\n<p>The employment agreement serves as legal protection for both parties.\u00a0 In the event that there are any disagreements or disputes, the employment agreement will usually be looked upon as the first point of reference.<\/p>\n<p>An employment agreement is essential in establishing a clear and formal understanding between the employer and the employee.<\/p>\n<p>It is recommended that one reviews also the collective agreement if a trades worker is signing up to be employed with a union.\u00a0 The collective agreement will outline in more detail the employee\u2019s rights and responsibilities, as well as any benefits that the employee may be entitled to.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Tax Forms with New Employer<\/span><\/p>\n<p>Individuals must fill out the Form <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_479_1340\">TD1 \u2013 Personal Tax Credits Return<\/a> forms in the following situations:<\/p>\n<ul>\n<li>Have a new employer or payer<\/li>\n<li>Want to change amounts from previous amounts claimed<\/li>\n<li>Want to claim the deduction for living in a prescribed zone<\/li>\n<li>Want to increase the amount of tax deducted at source<\/li>\n<\/ul>\n<p>This form is used to determine the amount of tax to be deducted from an employee\u2019s gross paycheck.\u00a0 All employers are required to make <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_479_1343\">source deductions<\/a> of income tax withholdings and remit the amounts to <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_479_654\">Canada Revenue Agency<\/a> on the employee\u2019s behalf.<\/p>\n<p>Provinces and Territories also have a corresponding TD1 \u2013 Personal Tax Credits Return to be completed at the same time.<\/p>\n<p>These TD1 tax forms look pretty intimidating at first glance, but an employee can ask for assistance from the employer and Canada Revenue Agency if needed in completing the forms accurately.\u00a0 The Government of Canada also provides <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/payroll\/set-up-new-employee\/filing-form-td1.html\" target=\"_blank\" rel=\"noopener\">guidance<\/a> on completing the TD1 forms for both the employee and employer.<\/p>\n<div class=\"textbox textbox--key-takeaways\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\">Tax Tip: <strong>Change in Tax Situation<\/strong><\/p>\n<\/header>\n<div class=\"textbox__content\">\n<p>Trade workers may have more frequent employer changes or multiple employers at the same time. Also, a trade apprentice\u2019s full-time student status may be different each calendar year depending on the timing of technical training levels.\u00a0 These employment status updates may change an individual\u2019s personal tax situation and available tax credits.\u00a0 It is recommended to review periodically and potentially complete an updated TD1 Form(s) with the employer, so that sufficient withholdings of income tax are deducted at source as you earn the income.\u00a0 From a planning and budgeting perspective, this will assist in reducing the likelihood of a surprise significant tax liability when the tax return is filed the following year.<\/p>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Registration with Trades Training Authority<\/span><\/p>\n<p>Each trades apprentice needs to be registered with the Provincial or Territorial Trades Training Authority for the particular trade.\u00a0 It is the trade apprentice\u2019s responsibility to also ensure that every new sponsoring employer has associated the apprentice\u2019s registration number to that employer.\u00a0 This is to warrant that work-based training hours can be recorded into the system towards certification.<\/p>\n<div class=\"glossary\"><span class=\"screen-reader-text\" id=\"definition\">definition<\/span><template id=\"term_479_1340\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_479_1340\"><div tabindex=\"-1\"><p>tax form used to determine the amount of tax to be deducted from an individual's employment income or other income.\u00a0 Federal and provincial\/territorial TD1 forms are completed separately<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_479_1343\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_479_1343\"><div tabindex=\"-1\"><p>amount of funds that employers are obligated to withhold from their employees and remit to Canada Revenue Agency.\u00a0 Includes Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_479_654\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_479_654\"><div tabindex=\"-1\"><p>agency that administers tax, benefits, and related programs to ensure compliance on behalf of governments across Canada, thereby contributing to the ongoing economic and social well-being of Canadians<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><\/div>","protected":false},"author":1780,"menu_order":3,"template":"","meta":{"pb_show_title":"on","pb_short_title":"Different Employer, More Paperwork","pb_subtitle":"","pb_authors":["anne-lee"],"pb_section_license":"cc-by-nc-nd"},"chapter-type":[48],"contributor":[61],"license":[58],"class_list":["post-479","chapter","type-chapter","status-publish","hentry","chapter-type-standard","contributor-anne-lee","license-cc-by-nc-nd"],"part":155,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/users\/1780"}],"version-history":[{"count":10,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/479\/revisions"}],"predecessor-version":[{"id":1374,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/479\/revisions\/1374"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/parts\/155"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/479\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/media?parent=479"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapter-type?post=479"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/contributor?post=479"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/license?post=479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}