As announced by Manitoba’s provincial government on March 23, 2023, the basic personal amount has been increased, effective January 1, 2023, to $15,000. This article covers what this means for your business.
Prorated Amount
Since the change is happening now, but effective January 1, the provincial government has set a pro-rated basic personal amount of $19,145. This will apply to any employee who worked and received payment between January 1, 2023 and June 30, 2023.
Non-Prorated Amount
For employees that did not work between January 1 and June 30, 2023, their basic amount can go to $15,000.
Examples
James – Prorated Amount
James started working for ABC Company on February 22, 2023. He currently has the previous basic personal amount of $10,855. For the remainder of 2023, his basic TD1 amount should be updated to $19,145.
Ayesha – Non-Prorated Amount
Ayesha just finished her university term and is working for the summer starting July 4, 2023. She did not work at any other company in 2023. Since it’s her first job of the year, she will claim $15,000 as her basic personal amount.
Updating your Payroll
To change all of the basic TD1 values for your employees, go to:
A. Settings.
B. Payroll Options.
C. System Options and look for Update TD Base for all employees.
D. Change the year to 2023.
E. Click Update TD.
F. Choose the Update all employees who have basic exemption option.
G. Proceed.
This will update all employees with the new basic personal amount.
For anyone that has provided a different claim amount, they will need to fill in a new TD1 provincial form that can be found here.
*Note the new form shows the basic personal amount as $15,000 (not the pro-rated rate). Please speak to your accountant or CRA to ensure you have used the best amount for your employee. The system will err on the side of caution and will not update employees who do not have the basic exemption of $10,855.