Letter of authority

Your employee will have to give you a letter of authority from the Canada Revenue Agency (CRA) in order for you to reduce the amount of tax you deduct from the remuneration that you pay to the employee. For example, this would be the case if an employee makes deductible RRSP contributions during the year, or if an employee lives in one province or territory but works in another and will have too much tax deducted.

If you have a number of employees in the same situation, you can also get a letter of authority applicable to the group of employees (blanket waiver). This way, every employee does not have to make an individual request. 

On this page

How to get a letter of authority
Situations where a letter of authority is not required
Situations where a letter of authority is required
Situations where a blanket waiver can be requested by an employer 
How to send in your request

How to get a letter of authority

To get a letter of authority, the employee has to send Form T1213, Request to Reduce Tax Deductions at Source, or a written request to the the CRA. For information on the different ways to send a request, see How to send in your request. The employee should include documents that support their position why less tax should be deducted at source.

If the employee meets the criteria, the CRA will send the employee a letter of authority, which they should give to you to reduce their income tax deductions.

We usually issue a letter of authority for a specific tax year. If an employee has a balance owing or has not filed outstanding income tax and benefit returns, we will not usually issue a letter of authority. Once the letter is received the employee has to give it to you, so you can start reducing the income tax deducted.

Keep all letters of authority with your payroll records so our officers can review them.

Situations where a letter of authority is not required

Certain amounts you withhold from the remuneration you pay to an employee automatically reduce the remuneration, and the amount of income tax to be deducted. You do not need a letter of authority for these amounts. For more information, see Reducing remuneration subject to income tax.

Situations where a letter of authority is required

Here are some examples why employees may request a reduction in tax deductions:

• employee makes charitable donations to registered charities or other qualified donees
• employee has employment-related expenses
• employee pays for child care
• employee makes deductible RRSP contributions himself during the year
• employee lives in one province or territory but works in another and will have too much tax deducted

Situations where a blanket waiver can be requested

Employers can request a blanket waiver in writing (Form T1213 is not required) where they will receive only one letter of authority (blanket waiver) applicable to a number of their employees for the following situations:  

• annual recurring lump-sum payments of taxable automobile allowance that can be substantially offset by the employee’s employment-related expenses.
• annual lump-sum payments of $2,000 or less that the employee will contribute to a deductible RRSP.
• One-time lump sum payments for severance pay of $15,000 or less.
• Requests for employees who work in one province but reside in another province.

How to send  in your request

You can send Form T1213 or a written request with copies of all supporting documents (keep your original supporting documents for your records):

Online:

 The CRA highly recommends that you submit the T1213 and all supporting documents online.

Submitting your form online is secure, efficient, and you will get a confirmation number that your request has been received by the CRA.

To submit online, scan your documents and send them through the Submit documents online service in one of the CRA’s secure online service portals; My Account, or Represent a Client.

By Mail or Fax:

Please note that submitting documents by mail or fax may result in longer processing times.

Sudbury Tax Centre
 PO Box 20000 Station A
 Sudbury ON  
 P3A 5C1 

 Fax: 418-562-3368 or 1-833-697-2401