Which Tax Documents does Sprintax TDS Canada prepare?

Published in

Sprintax Canada

4 min readOct 18, 2021

Every year thousands of people head to Canada temporarily to work or study at educational institutions or corporations.

Sprintax TDS Canada’s online software allows payroll departments in organisations and educational institutions to easily manage the tax profiles of each non-resident employee all in one place using our user-friendly dashboard.

Not only this, Sprintax TDS Canada provides its users with every relevant tax form needed to guarantee that international students and non-resident employees are taxed correctly on income they earn while working in Canada.

With so many different forms it’s hard to know what each of them are for and if they are actually needed.

With that in mind, we have created this handy guide to help you understand the forms generated by Sprintax TDS Canada.

Forms generated by Sprintax TDS Canada

TD1

There are a number of reasons why your employees will need to fill out a TD1 form in Canada, but, the most common ones include, starting a new job for the very first time or every time you get a new employer in Canada.

The form is needed to calculate the correct amount of tax your employees should pay on their income in order to determine if they are eligible to claim tax credits in Canada.

There are two types of the TD1 form. The Federal TD1 form must be filled out by every non-resident employed in Canada.

Employees who earn more than the basic personal amount are required to fill out both the Federal TD1 form along with the Provincial TD1 form for the province in which they work. For example the TD1 form for British Columbia is called a TD1BC.

TP-1015.3-V

Individuals living and working in Quebec should fill out and use the federal TD1 form as well as the provincial TP-1015.3-V, known as the Source Deductions Return form.

The form is used to report deductions and personal tax credits that your employees are entitled to so you can calculate and determine the income tax that should be withheld from their salaries, wages and commissions.

Form T4A

In general, a T4A slip is filled out for contributions you make to your employees’ pension, retirement annuities and lump sum payments made to replace hourly wages. This slip is also needed to record fees paid towards someone’s self-employment income or other forms of income.

As well as that, you must fill out a T4A slip for every subcontractor that is hired to complete a project as they are paid a lump sum and not an hourly rate.

The slip informs both your employees and the Canadian Revenue Agency (CRA) of the different types of income they have received, the amount they were paid and the tax that had been deducted throughout the year.

It is important to note that the T4A slips must be sent out to your employees by the last day in February each year and as an employer you are required to file a T4A summary with the CRA detailing the amounts paid on every slip you sent out.

Form T4A-NR

The T4A-NR slip is used to report any income, fees or salaries you have paid to non-resident individuals in Canada for services they have performed outside of the ordinary course of unemployment.

For example, you will fill out a T4A-Nr slip if you pay an American contractor to conduct work in Canada.

T2202

The T2202 form, also known as the Tuition and Enrolment Certificate, is a tax form issued by all educational institutions to qualifying students. The tax slip is sent to those who have paid tuition or fees on certain courses that are eligible to be claimed on their annual tax return.

International students who are required to file a Canadian income tax return can claim T22202 tax credits in order to reduce their tax burden.

International students earning a Canadian source of income that you employ are considered residents in Canada and therefore are required to file a tax return which could mean they are eligible for tax credits like the T2202.

How can Sprintax TDS Canada help?

It can be difficult to differentiate the different tax forms needed for each international employee or student.

With Sprintax TDS Canada’s user-friendly dashboard, it is easy for your payroll team to manage the profiles of each and every international employee, student or scholar.

As well as determining the residency status of every foreign employee and student, the software allows you to enjoy easy access to all necessary Canadian tax forms and will ensure that the correct amount of tax is withheld from your non-resident employees and reported to the IRS.

Simply upload your employee records to the TDS system, have every foreign national fill in the quick online questionnaire and you are ready to go. It’s that easy

Create your account with Sprintax TDS Canada today!