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Basic Personal Amount for Federal, Nova Scotia and Yukon TD1s

These are the Basic Personal Amounts Federal changes for the 2020 tax year. The CRA hasn't published changes for the 2021 yet. Check back soon!
In 2020, two maximums were introduced for the Basic Personal Amount (BPA) on the Federal, Nova Scotia, and Yukon TD1, based on the employee's annual salary.

This year, we’ve changed how Initialize Employee Totals adjusts the BPA, based on the option you select during Initialize Employee Totals. You can choose one of two options:

  • Set employee Federal and Provincial 2020 tax factors to 2021 values.

  • Set employee Federal and Provincial 2020 tax factors to zero.

Additional Information
Employees should complete a TD1 Worksheet if their income exceeds the maximum of $151,978 on the Federal TD1 and Yukon TD1. 

In Nova Scotia, employees should have a BPA of $11,481 if their income is $25,000 or less. If their income is more than $75,000, the BPA should be set at $8,481. Employees with income between $25,000 and $75,000 should complete the TD1NS-WS Worksheet. 

Set Tax Factors to 2021 Values

If you select Set employee Federal and Provincial 2020 tax factors to 2021 values, your tax factors to the 2021 value, it will:

  • Set the BPA to the corresponding 2021 maximum, if your employee had either of the 2020 maximums.

  • Index the BPA, if the employee’s BPA was not either of the 2020 maximums.

Set 2021 Tax Factors to Zero

If you select Set employee Federal and Provincial 2020 tax factors to zero, it will set your employee’s BPA based on the selection in the Program Option. If the Option value is Y, the BPA will be set to the larger amount. If the Option value is N, the BPA will be set to the lower amount.

  • The Federal BPA will set the based on option Py.UseTD1BasicMaxAmount.

  • The Nova Scotia BPA will set the based on option Py.UseTD1BasicMaxAmountNS.

  • The Yukon BPA will set the based on option Py.UseTD1BasicMaxAmountYT.

How to Confirm your Program Options 

If you need to confirm the program options are set correctly for your 2021 BPA, this section will guide you through reviewing the amounts and updating them, if necessary.

Step 1: Open Program Options in the Avanti Desktop Application.
By default, this can be found in System Administration >> System Parameters.

Step 2: Enter Py.UseTD1BasicMaxAmount in the search.

Step 3: Confirm the Option Value is correct for each BPA. If the value is Y, set the BPA to the larger amount. If the value is N:

  • The option for the Federal BPA is Py.UseTD1BasicMaxAmount.

  • The option for the Nova Scotia BPA is Py.UseTD1BasicMaxAmountNS.

  • The option for the Yukon BPA is Py.UseTD1BasicMaxAmountYT.

If the values are correct, congratulations! You’re ready to initialize your employee totals.

Step 4: If you need to make adjustments, select the value to change, then select Modify. 

Step 5: Update the amount in Value, then select OK.

Step 6: Repeat Steps 4 and 5 for each Basic Personal Amount you’d like to update.

Nice job. You’re all done updating the settings and are ready to initialize your employee totals. For more information on Initialize Employee Totals, go to Initialize Employee Totals

Do you want to learn more about the other changes in Avanti 9.45? Go to What's New in Avanti 9.45 - 2021 Year-End Tax Update

E
Elizabeth is the author of this solution article.

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