2021 January Payroll Tax Changes

Payroll Tax Changes For January 1, 2021

The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 113th Edition. Effective January 1, 2021 the following changes must be made to your payrolls: Please remember that deduction code changes MUST be made to each one of your payrolls separately. Do NOT implement deduction changes (EI and CPP) until you are ready to run a January pay period per payroll.

The Global Federal and Provincial exemptions, tax tables and tax parameters will only need to be added once for all payrolls. You would add the new exemptions and tax tables using a new effective date of January 2021 or 202101. The new Global tables can be added at any time as those tables are date effective.

Statutory Deduction changes for January 2021

CPP
the *Factor:*	.0545	(from .0525)
the *Limit* has been changed to:	3166.45	(from 2898.00)
basic exemption remains at:	3500.00	(extra line)
the YMPE has been changed to:	61600.00	verify any provincial pension deduction parameters

Change the following fields on all CPP deductions for ALL payrolls

*Factor*	.0545	(from .0525)
*Limit*	3166.45	(from 2898.00)

EI
the *Factor:*	.0158	(same .0158)
the *Limit* has been changed to:	56300.00	(from 54200.00)
the Maximum EI for the year is:	889.54	(from 856.36)

Change the following fields on all EI deductions for ALL payrolls:

*Factor*	.0158	(same .0158)
*Limit*	56300.00	(from 54200.00)

Do a Global Deduction Update for all CPP and EI deduction codes, per payroll. Note: CPP rate increase is due to the CPP enhancement.

Add new EI Tables with the effective date of January 1, 2021 using the factor of .0158 and new Maximum Eligible of 56300.00 (do not change old EI Tables). Note: Do not enter new EI Tables until you are ready to run with the new EI rate.

Global Federal Tax Tables

The Global Federal Tax Tables values would be added using a new effective date of January 01, 2021. Leave the existing Federal Tax Tables as is. The new Federal Tax Table values should be as follows:

49020	.1500
98040	.2050	2696
151987	.2600	8088
216511	.2900	12648
9999999	.3300	21308

Global Provincial Tax Tables

The Global Provincial Tax Tables values would be added using a new effective date of January 01, 2021. Leave the existing Provincial Tax Tables as is. The new Global Provincial Tax Table values should be as follows.

British Columbia
42184	.0506
84369	.0770	1114
96866	.1050	3476
117623	.1229	5210
159483	.1470	8045
222420	.1680	11394
9999999	.2050	19623

Alberta
131220	.1000
157464	.1200	2624
209952	.1300	4199
314928	.1400	6299
9999999	.1500	9448

Saskatchewan
45677	.1050
130506	.1250	914
9999999	.1450	3524

Manitoba
33723	.1080
72885	.1275	658
9999999	.1740	4047

Ontario
45142	.0505
90287	.0915	1851
150000	.1116	3666
220000	.1216	5166
9999999	.1316	7366

Global Federal Exemptions

The Federal index for January 2021 is 1.0%. Add the new Global Federal exemptions using the effective date of January 1, 2021. Leave the previous Federal exemptions as is. The following table details the exemption ranges and the exemption mid points. It is up to each site to determine if they want to use the high end of each range or the mid-point of each range as the exemption amounts.

Exemption Code	Range	Mid-Point
01	min - 13,808	13,808.00
02	13,808 - 16,158	14,983.00
03	16,158 - 18,508	17,333.00
04	18,508 - 20,858	19,683.00
05	20,858 - 23,208	22,033.00
06	23,208 - 25,558	24,383.00
07	25,558 - 27,908	26,733.00
08	27,908 - 30,258	29,083.00
09	30,258 - 32,608	31,433.00
10	32,608 - 34,958	33,783.00

Global Provincial Exemptions

The Global Provincial Exemption amounts for January 1, 2021. Add the new Provincial exemptions using the effective date of January 1, 2021. Leave the previous Provincial exemptions as is. The following tables detail the exemption ranges and the exemption mid-points. It is up to each site to determine if they want to use the high end of each range or the mid-point of each range as the exemption amounts.

British Columbia

Exemption Code	Range	Mid-Point
01	min - 11,070	11,070.00
02	11,070 - 13,561	12,315.50
03	13,561 - 16,052	14,806.50
04	16,052 - 18,543	17,297.50
05	18,543 - 21,034	19,788.50
06	21,034 - 23,525	22,279.50
07	23,525 - 26,016	24,770.50
08	26,016 - 28,507	27,261.50
09	28,507 - 30,998	29,752.50
10	30,998 - 33,489	32,243.50

Alberta

Exemption Code	Range	Mid-Point
01	min - 19,369	19,369.00
02	19,369 - 22,203	20,786.00
03	22,203 - 25,037	23,620.00
04	25,037 - 27,871	26,454.00
05	27,871 - 30,705	29,288.00
06	30,705 - 33,539	32,122.00
07	33,539 - 36,373	34,956.00
08	36,373 - 39,207	37,790.00
09	39,207 - 42,041	40,624.00
10	42,041 - 44,875	43,458.00

Saskatchewan

Exemption Code	Range	Mid-Point
01	min - 16,225	16,225.00
02	16,225 - 18,313	17,269.00
03	18,313 - 20,401	19,357.00
04	20,401 - 22,489	21,445.00
05	22,489 - 24,577	23,533.00
06	24,577 - 26,665	25,621.00
07	26,665 -28,753	27,709.00
08	28,753 - 30,841	29,797.00
09	30,841 - 32,929	31,885.00
10	32,929 - 35,017	33,973.00

Manitoba

Exemption Code	Range	Mid-Point
01	min - 9,936	9,936.00
02	9,936 - 11,629	10,782.50
03	11,629 - 13,322	12,475.50
04	13,322 - 15,015	14,168.50
05	15,015 - 16,708	15,861.50
06	16,708 - 18,401	17,554.50
07	18,401 - 20,094	19,247.50
08	20,094 - 21,787	20,940.50
09	21,787 - 23,480	22,633.50
10	23,480 - 25,173	24,326.50

Ontario

Exemption Code	Range	Mid-Point
01	min - 10,880	10,880.00
02	10,880 - 13,224	12,052.00
03	13,224 - 15,568	14,396.00
04	15,568 - 17,912	16,740.00
05	17,912 - 20,256	19,084.00
06	20,256 - 22,600	21,428.00
07	22,600 - 24,944	23,772.00
08	24,944 - 27,288	26,116.00
09	27,288 - 29,632	28,460.00
10	29,632 - 31,976	30,804.00

Global Provincial Tax Parameters – British Columbia

Add a new set of Global Provincial Tax Parameters using the effective date of 20210101 or January 01, 2021.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.0506
Federal Employment Credit (K4)	1,257.00	(from 1,245.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,421.00	(from 12,298.00)
Threshold	151,978.00	(from 150,473.00)
Threshold	216,511.00	(from 214,368.00)

Maximum Contributions
CPP Maximum Contributions	3,166.45	(from 2,898.00)
EI Maximum Contributions	889.54	(from 856.36)

Provincial Tax Reduction (S)
Flat Amount	481.00	(from 476.00)
Rate	.0356	Threshold	21,418.00	(from 21,185.00)
Amount	0	Threshold	34,929.00	(from 34,556.00)
Amount	0	Threshold	0
Amount	0	Threshold	0

Provincial Surtax V1
Flat Amount
Rate	Threshold	0
Rate	Threshold	0

Provincial Additional Tax (V2)
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount

Global Provincial Tax Parameters – Alberta

Add a new set of Global Provincial Tax Parameters using the effective date of 20210101 or January 01, 2021.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.100
Federal Employment Credit (K4)	1,257.00	(from 1,245.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,421.00	(from 12,298.00)
Threshold	151,978.00	(from 150,473.00)
Threshold	216,511.00	(from 214,368.00)

Maximum Contributions
CPP Maximum Contributions	3,166.45	(from 2,898.00)
EI Maximum Contributions	889.54	(from 856.36)

Provincial Tax Reduction (S)
Flat Amount
Rate	Threshold	0
Amount	Threshold	0
Amount	Threshold	0
Amount	Threshold	0

Provincial Surtax V1
Flat Amount
Rate	Threshold	0
Rate	Threshold	0

Provincial Additional Tax (V2)
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount

Global Provincial Tax Parameters – Saskatchewan

Add a new set of Global Provincial Tax Parameters using the effective date of 20210101 or January 01, 2021.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.105
Federal Employment Credit (K4)	1,257.00	(from 1,245.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,421.00	(from 12,298.00)
Threshold	151,978.00	(from 150,473.00)
Threshold	216,511.00	(from 214,368.00)

Maximum Contributions
CPP Maximum Contributions	3,166.45	(from 2,898.00)
EI Maximum Contributions	889.54	(from 856.36)

Provincial Tax Reduction (S)
Flat Amount
Rate	Threshold	0
Amount	Threshold	0
Amount	Threshold	0
Amount	Threshold	0

Provincial Surtax V1
Flat Amount
Rate	Threshold	0
Rate	Threshold	0

Provincial Additional Tax (V2)
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount

Global Provincial Tax Parameters – Manitoba

Add a new set of Global Provincial Tax Parameters using the effective date of 20210101 or January 01, 2021.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.108
Federal Employment Credit (K4)	1,257.00	(from 1,245.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,421.00	(from 12,298.00)
Threshold	151,978.00	(from 150,473.00)
Threshold	216,511.00	(from 214,368.00)

Maximum Contributions
CPP Maximum Contributions	3,166.45	(from 2,898.00)
EI Maximum Contributions	889.54	(from 856.36)

Provincial Tax Reduction (S)
Flat Amount
Rate	Threshold	0
Amount	Threshold	0
Amount	Threshold	0
Amount	Threshold	0

Provincial Surtax V1
Flat Amount
Rate	Threshold	0
Rate	Threshold	0

Provincial Additional Tax (V2)
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount
Rate	Threshold	Amount

Global Provincial Tax Parameters – Ontario

Add a new set of Global Provincial Tax Parameters using the effective date of 20210101 or January 01, 2021.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.0505
Federal Employment Credit (K4)	1,257.00	(from 1,245.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,421.00	(from 12,298.00)
Threshold	151,978.00	(from 150,473.00)
Threshold	216,511.00	(from 214,368.00)

Maximum Contributions
CPP Maximum Contributions	3,166.45	(from 2,898.00)
EI Maximum Contributions	889.54	(from 856.36)

Provincial Tax Reduction (S)
Flat Amount	251.00	(from 249.00)
Rate	2	Threshold	0
Amount	464.00	Threshold	0
Amount	0	Threshold	0
Amount	0	Threshold	0

Provincial Surtax V1
Flat Amount	0
Rate	.20	Threshold	4,874.00	(from 4,830.00)
Rate	.36	Threshold	6,237.00	(from 6,182.00)

Provincial Additional Tax (V2) (Ontario Health Premium)
Rate	.06	Threshold	20000.00	Amount	300.00
Rate	.06	Threshold	36000.00	Amount	450.00
Rate	.25	Threshold	48000.00	Amount	600.00
Rate	.25	Threshold	72000.00	Amount	750.00
Rate	.25	Threshold	200000.00	Amount	900.00
Rate	0	Threshold	0	Amount	0