Question

In your own words, explain why and how an employee would: request additional tax deductions at source apply for a reduction in tax deductions at source

Answer 1

When a new employee joins an organization he will be asked to complete a form related to tax and based on it the employer will determine the amount of income tax he is liable to pay other than the standard deductions like social security taxes. The income tax is withheld by the employees an paid on behalf of them. Sometimes employee request for additional tax deduction at source to pay for their personal tax liability by the company itself as it is easy. They does this by filling federal TD1 form. An employee can also $https://d.adroll.com/fb/tr/cohort_id/RMA4JRK3LBCRFDGPVVO45A/?id=786955831361754&ev=ViewContent&cd%5bcontent_type%5d=cohort&adroll_fpc=7bf9450279aab39fbe4700c1f49d9254$ apply for a reduction in tax deductions at source if the employer is withholding more amount in this case they have to fill CRA or RQ form.