2022 January Payroll Tax Changes

Payroll Tax Changes For January 1, 2022

The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 115th Edition. Effective January 1, 2022 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 2022 or 202201. The new Global tables can be added at any time as those tables are date effective.

Statutory Deduction changes for January 2022

CPP
the *Factor:*	.057	(from .0545)
the *Limit* has been changed to:	3499.80	(from 3166.45)
basic exemption remains at:	3500.00	(extra line)
the YMPE has been changed to:	64900.00	verify any provincial pension deduction parameters

Change the following fields on all CPP deductions for ALL payrolls

*Factor*	.057	(from .0545)
*Limit*	3499.80	(from 3166.45)

EI
the *Factor:*	.0158	(same .0158)
the *Limit* has been changed to:	60300.00	(from 56300.00)
the Maximum EI for the year is:	952.74	(from 889.54)

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

*Factor*	.0158	(same .0158)
*Limit*	60300.00	(from 56300.00)

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, 2022 using the factor of .0158 and new Maximum Eligible of 60300.00 (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, 2022. Leave the existing Federal Tax Tables as is. The new Federal Tax Table values should be as follows:

50197	.1500
100392	.2050	2761
155625	.2600	8282
221708	.2900	12951
9999999	.3300	21819

Global Provincial Tax Tables

The Global Provincial Tax Tables values would be added using a new effective date of January 01, 2022. Leave the existing Provincial Tax Tables as is. The new Global Provincial Tax Table values should be as follows.

British Columbia
43070	.0506
86141	.0770	1137
98901	.1050	3549
120094	.1229	5319
162832	.1470	8214
227091	.1680	11633
9999999	.2050	20035

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

Saskatchewan
46773	.1050
133638	.1250	935
9999999	.1450	3608

Manitoba
34431	.1080
74416	.1275	671
9999999	.1740	4132

Ontario
46226	.0505
92454	.0915	1895
150000	.1116	3754
220000	.1216	5254
9999999	.1316	7454

Global Federal Exemptions

The Federal index for January 2022 is 2.4%. Add the new Global Federal exemptions using the effective date of January 1, 2022. 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 - 14,398	14,398.00
02	14,398 - 16,828	15,613.00
03	16,828 - 19,258	18,043.00
04	19,258 - 21,688	20,473.00
05	21,688 – 24,118	22,903.00
06	24,118 – 26,548	25,333.00
07	26,548 – 28,978	27,763.00
08	28,978 – 31,408	30,193.00
09	31,408 – 33,838	32,623.00
10	33,838 – 36,268	35,053.00

Global Provincial Exemptions

The Global Provincial Exemption amounts for January 1, 2022. Add the new Provincial exemptions using the effective date of January 1, 2022. 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 – 11,302	11,302.00
02	11,302 – 13,845	12,573.50
03	13,845 – 16,388	15,116.50
04	16,388 – 18,931	17,659.50
05	18,931 – 21,474	20,202.50
06	21,474 – 24,017	22,745.50
07	24,017 – 26,560	25,288.50
08	26,560 – 29,103	27,831.50
09	29,103 – 31,646	30,374.50
10	31,646 – 34,189	32,917.50

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 – 16,615	16,615.00
02	16,615 – 18,753	17,684.00
03	18,753 – 20,891	19,822.00
04	20,891 – 23,029	21,960.00
05	23,029 – 25,167	24,098.00
06	25,167 – 27,305	26,236.00
07	27,305 – 29,443	28,374.00
08	29,443 – 31,581	30,512.00
09	31,581 – 33,719	32,650.00
10	33,719 – 35,857	34,788.00

Manitoba

Exemption Code	Range	Mid-Point
01	min – 10,145	10,145.00
02	10,145 – 11,838	10,991.50
03	11,838 – 13,531	12,684.50
04	13,531 – 15,224	14,377.50
05	15,224 – 16,917	16,070.50
06	16,917 – 18,610	17,763.50
07	18,610 – 20,303	19,456.50
08	20,303 – 21,996	21,149.50
09	21,996 – 23,689	22,842.50
10	23,689 – 25,382	24,535.50

Ontario

Exemption Code	Range	Mid-Point
01	min – 11,141	11,141.00
02	11,141 – 13,541	12,341.00
03	13,541 – 15,941	14,741.00
04	15,941 – 18,341	17,141.00
05	18,341 – 20,741	19,541.00
06	20,741 – 23,141	21,941.00
07	23,141 – 25,541	24,341.00
08	25,541 – 27,941	26,741.00
09	27,941 – 30,341	29,141.00
10	30,341 – 32,741	31,541.00

Global Provincial Tax Parameters – British Columbia

Add a new set of Global Provincial Tax Parameters using the effective date of 20220101 or January 01, 2022.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.0506
Federal Employment Credit (K4)	1,287.00	(from 1,257.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,719.00	(from 12,421.00)
Threshold	155,625.00	(from 151,978.00)
Threshold	221,708.00	(from 216,511.00)

Maximum Contributions
CPP Maximum Contributions	3,499.80	(from 3,166.45
EI Maximum Contributions	952.74	(from 889.54)

Provincial Tax Reduction (S)
Flat Amount	491.00	(from 481.00)
Rate	.0356	Threshold	21,867.00	(from 21,418.00)
Amount	0	Threshold	35,659.00	(from 34,929.00)
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 20220101 or January 01, 2022.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.100
Federal Employment Credit (K4)	1,287.00	(from 1,257.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,719.00	(from 12,421.00)
Threshold	155,625.00	(from 151,978.00)
Threshold	221,708.00	(from 216,511.00)

Maximum Contributions
CPP Maximum Contributions	3,499.80	(from 3,166.45)
EI Maximum Contributions	952.74	(from 889.54)

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 20220101 or January 01, 2022.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.105
Federal Employment Credit (K4)	1,287.00	(from 1,257.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,719.00	(from 12,421.00)
Threshold	155,625.00	(from 151,978.00)
Threshold	221,708.00	(from 216,511.00)

Maximum Contributions
CPP Maximum Contributions	3,499.80	(from 3,166.45)
EI Maximum Contributions	952.74	(from 889.54)

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 20220101 or January 01, 2022.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.108
Federal Employment Credit (K4)	1,287.00	(from 1,257.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,719.00	(from 12,421.00)
Threshold	155,625.00	(from 151,978.00)
Threshold	221,708.00	(from 216,511.00)

Maximum Contributions
CPP Maximum Contributions	3,499.80	(from 3,166.45)
EI Maximum Contributions	952.74	(from 889.54)

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 20220101 or January 01, 2022.

Tax Credits
Federal Personal Tax Credit (K1)	.15
Provincial Personal Tax Credit (K1P)	.0505
Federal Employment Credit (K4)	1,287.00	(from 1,257.00)

Federal Basic Personal Amount (BPAF)
Minimum Amount	12,719.00	(from 12,421.00)
Threshold	155,625.00	(from 151,978.00)
Threshold	221,708.00	(from 216,511.00)

Maximum Contributions
CPP Maximum Contributions	3,499.80	(from 3,166.45)
EI Maximum Contributions	952.74	(from 889.54)

Provincial Tax Reduction (S)
Provincial Tax Reduction (S)
Flat Amount	257.00	(from 251.00)
Rate	2	Threshold	0
Amount	475.00	Threshold	0
Amount	0	Threshold	0
Amount	0	Threshold	0

Provincial Surtax V1
Flat Amount	0
Rate	.20	Threshold	4,991.00	(from 4,874.00)
Rate	.36	Threshold	6,387.00	(from 6,237.00)

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