Payroll on Bloomberg Tax is built to get you to the right answer faster and more efficiently. Get all the payroll intelligence you need with Bloomberg Tax expert analysis, perspectives and...
Nov. 16 — The 2017 formulas for calculating payroll withholding and contribution amounts were released by the Canadian Revenue Agency said Nov. 16.
Pending legislative approval, the changes take effect Jan. 1, 2017.
The 105th edition of guide T4127 provides the latest formulas to determine federal, provincial and territorial income and social taxes. The guide also clarifies how to calculate payroll deductions for special cases such as commission, pension income, bonuses and retroactive pay increases.
In the latest iteration of T4127, the federal income tax thresholds effective Jan. 1, 2017, have been adjusted to reflect changes based on the 2017 consumer price index factor of 1.4 percent. It also includes the 2017 rates for Canada Pension Plan and Quebec Pension Plan contributions as well as employment insurance premium deductions.
The maximum Canada Pension Plan pensionable earnings effective Jan. 1, 2017, are $55,300 ($41,141), and the basic exemption for the year is $3,500 ($2,603). The contribution rate for employees is 4.95 percent.
The Quebec Pension Plan contribution rate for employees, which is the same rate for employers is 5.4 percent effective Jan. 1, 2017. The maximum an employee can contribute for the year is $2,797.20 ($2,081).
The maximum annual insurable earnings in 2017 for employment insurance are $51,300 ($38,166) while the premium rate is 1.63 percent, for a maximum annual premium of $836.19 ($622). In Quebec, the employment insurance premium rate for 2017 is 1.27 percent and the maximum annual premium is $651.51 ($484).
Provincial changes for 2017 only consist of indexing of taxes. The income tax thresholds in Alberta, British Columbia, Manitoba, New Brunswick, Nunavut, Ontario, Saskatchewan and the Yukon Territory were all indexed at rates determined by each provincial government.
Furthermore, Ontario’s provincial surtax and provincial tax reduction were both indexed. British Columbia’s provincial tax reduction was also indexed.
There were no 2017 changes for payroll withholding and contribution amounts for Nova Scotia, Prince Edward Island and Quebec.
The payroll deduction formulas for 2017 are available at http://www.cra-arc.gc.ca/E/pub/tg/t4127-jan/t4127-jan-17e.html. More information on payroll issues in Canada is available in the Canada country primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)