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Personal Tax -> Multiple jobs - too much tax owing

Multiple Jobs - Why Do I Owe so Much Tax?

When payroll deductions are calculated at each of your jobs, your salary or wages for the payroll period are annualized to determine the income tax rate.  As a result, you are paying income tax at a rate that assumes you will be earning the same amount per pay period for a year.

If you are working at 2 or more jobs in the same month, and this continues throughout the year, you may owe income taxes at the end of the year.  Your payroll tax deductions are determined by the TD1 forms (both federal and provincial/territorial) that you fill out for the employer when you are hired.

Individuals who have more than one employer at the same time cannot claim deductions on more than one TD1 form.  If total income from all employers and payers will be more than the deductions claimed on the TD1 already filed with an employer, then the box "More than one employer or payer at the same time" on the back of the TD1 form should be ticked, and "0" should be entered as the "Total Claim Amount" on page 1 of the TD1.  Lines above should not be completed.

If this is not done properly, tax will be owed when the tax return is filed.

Use the Canadian Tax Calculator for your province or territory to estimate the tax that you will owe at the end of the year.

TaxTips.ca Resources

TD1 Forms Determine Your Tax Withholdings

Tax Tip:  It is mandatory to fill out a TD1 form for each employer.  Make sure the form is completed correctly.

Revised: February 02, 2021

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