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2020 Payroll Tax Update Canada

Revision History 

Original: Dec. 11, 2018

Update Dec 20, 2018

  • Under the current provisions of the Regulations, when an employee who works in Quebec (and therefore contributes to the Quebec Pension Plan (QPP) at a higher rate than the contribution rate of the CPP) is transferred by their employer before the end of the calendar year to a location outside of Quebec, an insufficient amount of total CPP and QPP contributions may have been made which, in turn, may impact future benefits. A new provision is being added to the Regulations prescribing the formula to be used to reconcile the amounts contributed to both plans in order to ensure that sufficient contributions to the federal plan are withheld in this circumstance.”
  • To reflect this proposed amendment to the CPP Regulations, the formulas for factor C have been updated and a new factor “DQ” has been introduced (refer to the glossary and chapter 7) to calculate contributions remaining. These changes are effective January 1, 2019. These changes will result in adjustments to other formulas which will be introduced in future releases. The Canada Revenue Agency will expect from employers their best efforts to comply with this proposed Regulation during 2019 calendar year. Starting January 1, 2020, employers should be fully compliant with respect to this Regulation.

2019 Payroll Tax Update Canada

The following information has been summarized based on the Canada Revenue Agency publication t4127-19e.pdf and the Revenue Quebec publication tp-1015.f-v(2019-01).pdf

This information can be obtained, in detail, at the following links:

Disclaimer

This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective January 1, 2019. At the time of publishing, these proposed changes were not law. We recommend that you use the Payroll Deductions Online Calculator (PDOC), Publication T4032, Payroll Deductions Tables, or Publication T4008, Payroll Deductions Supplementary Tables, and the formulas from the government links above for withholding, starting with your first payroll in 2019.

Federal Brackets

Please see here for information on how to update brackets for the new tax year.

NOTE: The naming convention of your brackets may vary.

Bracket Type Description 2019 Values

CPP LIMITS

Withholding

Exemption, rate and maximum deduction

Amount Over

Tax %

Limit

3,500.00

5.1

2,748.90

CPP W/H

 

Withholding

Exemption, rate and maximum deduction

Amount Over

Tax %

Limit

3,500.00

5.1

2,748.90

CPP W/H BONUS

                  

Withholding

Exemption, rate and maximum deduction

Amount Over

Tax %

Limit

0.00

5.1

2,748.90

CPP/QPP MAX

Limit + Tax%

Pensionable earnings maximum

Tax %

Limit

0.00

57,400.00

EI LIMITS

Withholding

Rate and maximum deduction

Tax %

Limit

1.62

860.22

EI MAX

Limit + Tax%

Insurable earnings maximum

Tax %

Limit

0.00

53,100.00

EI MAX Q

Limit + Tax%

Insurable earnings maximum

Tax %

Limit

0.00

53,100.00

EI W/H

Withholding

Rate and maximum deduction

Tax %

Limit

1.62

860.22

EI W/H Q

Withholding

Rate and maximum deduction

Tax %

Limit

1.25

663.75

FED TAX

Withholding

Withholding brackets and rates

Amount Over

Tax %

Tax Amount

0.00

15

0.00

47,630.00

20.5

7,144.50

95,259.00

26

16,908.45

147,667.00

29

30,534.53

210,371.00

33

48,718.69

 

MAX EMPLOYMENT CRED

Limit + Tax

Credit limit

Tax %

Limit

0.00

1,222.00

Provincial Brackets

Please see here for information on how to update brackets for the new tax year.

NOTE: The naming convention of your brackets may vary.

Bracket Type Description   2019 Values  
AB TAX
 
Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 10 0.00
131,220.00 12 13,122.00
157,464.00 13 16,271.28
209,952.00 14 23,094.72
314,928.00 15 37,791.36
BC TAX
 
Withholding
 
Withholding brackets and rates
 
Amount Over Tax % Tax Amount
0.00 5.06 0.00
40,707.00 7.7 2,059.77
81,416.00 10.5 5,194.36
93,476.00 12.29 6,460.66
113,506.00 14.7 8,922.35
153,900.00 16.8 14,860.27
BC TAX RED W/H Deduction Reduction brackets, rates and limit Amount Over Tax % Tax Amount Limit
0.00 0 0.00 464.00
20,668.00 3.56 0.00 464.00
33,702.00 0 464.00 464.00
MB TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 10.8 0.00
32,670.00 12.75 3,528.36
70,610.00 17.40 8,365.71
NB TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 9.68 0.00
42,592.00 14.82 4,122.91
85,184.00 16.52 10,435.04
138,491.00 17.84 19,241.36
157,778.00 20.3 22,682.16
NL TAX W/H Withholding  Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 8.7 0.00
37,591.00 14.5 3,270.42
75,181.00 15.8 8,720.97
134,224.00 17.3 18,049.76
187,913.00 18.3 27,337.96
NS TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 8.79 0.00
29,590.00 14.95 2,600.96
59,180.00 16.67 7,024.67
93,000.00 17.5 12,662.46
150,000.00 21 22,637.46
NT TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 5.9 0.00
43,137.00 8.6 2,545.08
86,277.00 12.2 6,255.12
140,267.00 14.05 12,841.90
NT PTAX
 
Limit + Tax% NT - Payroll Tax Tax % Limit
2 5,000.00
NU TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 4 0.00
45,414.00 7 1,816.56
90,829.00 9 4,995.61
147,667.00 11.5 10,111.03
ON BASIC RED Tax Credit Reduction Amounts Amount Per Allowance
244.00 Blank
452.00 Selected
ON SURTAX W/H Deduction Surtax Rates Amount Over Tax % Tax Amount
4,740.00 20 0.00
6,067.00 56 265.40
ON TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 5.05 0.00
43,906.00 9.15 2,217.25
87,813.00 11.16 6,234.74
150,000.00 12.16 13,174.81
220,000.00 13.16 21,686.81
PEI TAX W/H
 
Withholding  Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 9.8 0.00
31,984.00 13.8 3,134.43
63,969.00 16.7 7,548.36
QC CNT ER CONT Limit + Tax% Rate and maximum earnings Tax % Limit
0.0736 76,500.000
QC LOW RATE Tax Credit Total Credits Claimed x Bracket % Tax % Per Allowance
15 Blank
QC RED Deduction Maximum income reduction % Max. Amount
6 1,170.00
QC TAX W/H Withholding  Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 15 0.00
43,790.00 20 6,568.50
87,575.00 24 15,325.50
106,555.00 25.75 19,880.70
QPIP EE Withholding Rate and limit Tax % Limit
0.526 405.52
QPIP ER Withholding Rate and limit Tax % Limit
0.736 567.58
QPIP MAX Limit + Tax % Maximum earnings Tax % Limit
0 76,500.00
QPP W/H Withholding Exemption, rate and maximum deduction Amount Over Tax % Limit
3,500.00 5.55 2,991.45
QPP W/H BONUS Withholding Exemption, rate and maximum deduction Amount Over Tax % Limit
0.00 5.55 2,991.45
SK LOW RATE Tax Credit Total Credits Claimed x Bracket % Tax % Per Allowance
10.5 Blank
SK TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 10.5 0.00
45,225.00 12.5 4,748.63
129,214.00 14.5 15,247.26
YT TAX W/H Withholding Withholding brackets and rates Amount Over Tax % Tax Amount
0.00 6.4 0.00
47,630.00 9 3,048.32
95,259.00 10.9 7,334.93
147,667.00 12.8 13,047.40
500,000.00 15 58,146.02
YT LOW RATE Tax Credit Reduction amounts Tax % Per Allowance
6.4 blank

Base Amount Changes

None applicable to this tax year. 

Tax Form Class Code Changes

None applicable to this tax year.

Changes to Payroll Objects

None applicable to this tax year.

Method Step Table Changes

None applicable to this tax year.

Calculation Method Changes Required

None applicable to this tax year.

TD1 Amounts

Please see here for information on how to update TD1 amounts for the new tax year.

Federal 

Type Amount
Basic personal amount 12.069.00
Child amount 2,230.00
Age amount 7,494.00
Disability amount 8,416.00
Spouse or common-law partner amount 12,069.0012.069.00
Amount for an eligible dependent 12,069.00
Amount for an infirm dependent age 18 or older 7,140.00

Alberta  

Type Amount
Basic personal amount 19,369.00
Spouse or common-law partner amount Up to 19,369.00

British Columbia

Type Amount
Basic personal amount 10,682.00
Spouse or common-law partner amount Up to 9,147.00

Manitoba

Type Amount
Basic personal amount 9,626.00
Spouse or common-law partner amount Up to 9,134.00

New Brunswick

Type Amount
Basic personal amount 10,264.00
Spouse or common-law partner amount Up to 8716.00

Newfoundland and Labrador

Type Amount
Basic personal amount 9,414.00
Spouse or common-law partner amount Up to 7,692.00

Northwest Territories

Type Amount
Basic personal amount 14,811.00
Spouse or common-law partner amount Up to 14,811.00

Nova Scotia

Type Amount
Basic personal amount Up to 11,481.00
Spouse or common-law partner amount Up to 8,481.00

Nunavut 

Type Amount
Basic personal amount 13,618.00
Spouse or common-law partner amount Up to 13,618.00

Ontario

Type Amount
Basic personal amount 10,582.00
Spouse or common-law partner amount Up to 8,985.00

Prince Edward Island

Type Amount
Basic personal amount 9,160.00
Spouse or common-law partner amount Up to 7,780.00

Quebec

Type Amount
Basic personal amount 15,269.00
Spouse or common-law partner amount Up to 15,269.00
Amount for other dependents who are 18 or older 4,274.00
Amount for a child under 18 enrolled in post-secondary studies 2,933.00
Additional amount for person living alone (single-parent family) 2,160.00
Amount for a severe and prolonged impairment in mental or physical functions 3,391.00
Amount for a person living alone 1,750.00
Age amount 3,212.00
Amount for retirement income 2,853.00

Saskatchewan

Type Amount
Basic personal amount 16,065.00
Spouse or common-law partner amount Up to 16,065.00

Yukon 

Type Amount
Basic personal amount 12,069.00
Spouse or common-law partner amount Up to 14,299.00

Other Configurations

Please see here for information on other configuration to be updated in preparation for the new tax year.

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