Payroll Tax Changes For January 1, 2023
The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 115th Edition. Effective January 1, 2023 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 2023 or 202301. The new Global tables can be added at any time as those tables are date effective.
Statutory Deduction changes for January 2023
|
CPP |
|
|
|---|---|---|
|
the Factor: |
.0595 |
(from .057) |
|
the Limit has been changed to: |
3754.45 |
(from 3499.80) |
|
basic exemption remains at: |
3500.00 |
(extra line) |
|
the YMPE has been changed to: |
66600.00 |
verify any provincial pension deduction parameters |
Change the following fields on all CPP deductions for ALL payrolls
|
Factor |
.0595 |
(from .057) |
|
Limit |
3754.45 |
(from 3499.80) |
|
EI |
|
|
|---|---|---|
|
the Factor: |
.0163 |
(from .0158) |
|
the Limit has been changed to: |
61500.00 |
(from 60300.00) |
|
the Maximum EI for the year is: |
1002.45 |
(from 952.74) |
Change the following fields on all EI deductions for ALL payrolls:
|
Factor |
.0163 |
(from .0158) |
|
Limit |
61500.00 |
(from 60300.00) |
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, 2023 using the factor of .0163 and new Maximum Eligible of 61500.00 (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, 2023. Leave the existing Federal Tax Tables as is. The new Federal Tax Table values should be as follows:
|
53359 |
.1500 |
|
|
106717 |
.2050 |
2935 |
|
165430 |
.2600 |
8804 |
|
235675 |
.2900 |
13767 |
|
9999999 |
.3300 |
23194 |
Global Provincial Tax Tables
The Global Provincial Tax Tables values would be added using a new effective date of January 01, 2023. Leave the existing Provincial Tax Tables as is. The new Global Provincial Tax Table values should be as follows.
|
British Columbia |
|
|
|---|---|---|
|
45654 |
.0506 |
|
|
91310 |
.0770 |
1205 |
|
104835 |
.1050 |
3762 |
|
127299 |
.1229 |
5638 |
|
172602 |
.1470 |
8706 |
|
240716 |
.1680 |
12331 |
|
9999999 |
.2050 |
21238 |
|
Alberta |
|
|
|---|---|---|
|
142292 |
.1000 |
|
|
170751 |
.1200 |
2846 |
|
227668 |
.1300 |
4553 |
|
341502 |
.1400 |
6830 |
|
9999999 |
.1500 |
10245 |
|
Saskatchewan |
|
|
|---|---|---|
|
49720 |
.1050 |
|
|
142058 |
.1250 |
994 |
|
9999999 |
.1450 |
3836 |
|
Manitoba |
|
|
|---|---|---|
|
36842 |
.1080 |
|
|
79625 |
.1275 |
718 |
|
9999999 |
.1740 |
4421 |
|
Ontario |
|
|
|---|---|---|
|
49231 |
.0505 |
|
|
98463 |
.0915 |
2018 |
|
150000 |
.1116 |
3998 |
|
220000 |
.1216 |
5498 |
|
9999999 |
.1316 |
7698 |
Global Federal Exemptions
The Federal index for January 2023 is 6.3%. Add the new Global Federal exemptions using the effective date of January 1, 2023. 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 -15,000 |
15,000.00 |
|
02 |
15,000 – 17,583 |
16,291.50 |
|
03 |
17,583 – 20,166 |
18,874.50 |
|
04 |
20,166 – 22,749 |
21,457.50 |
|
05 |
22,749 – 25,332 |
24,040.50 |
|
06 |
25,332 – 27,915 |
26,623.50 |
|
07 |
27,915 – 30,498 |
29,206.50 |
|
08 |
30,498 – 33,081 |
31,789.50 |
|
09 |
33,081 – 35,664 |
34,372.50 |
|
10 |
35,664 – 38247 |
36,955.50 |
Global Provincial Exemptions
The Global Provincial Exemption amounts for January 1, 2023. Add the new Provincial exemptions using the effective date of January 1, 2023. 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 – 11,981 |
11,981.00 |
|
02 |
11,981 - 14,677 |
13,329.00 |
|
03 |
14,677 - 17,373 |
16,025.00 |
|
04 |
17,373 – 20,069 |
18,721.00 |
|
05 |
20,069 – 22,765 |
21,417.00 |
|
06 |
22,765 – 25,461 |
24,113.00 |
|
07 |
25,461 – 28,157 |
26,809.00 |
|
08 |
28,157– 30,853 |
29,505.00 |
|
09 |
30,853 – 33,549 |
32,201.00 |
|
10 |
33,549 – 36,245 |
34,897.00 |
Alberta
|
Exemption Code |
Range |
Mid-Point |
|---|---|---|
|
01 |
min – 21,003 |
21,003.00 |
|
02 |
21,003 – 24,007 |
22,505.00 |
|
03 |
24,007 – 27,011 |
25,509.00 |
|
04 |
27,011 – 30,015 |
28,513.00 |
|
05 |
30,015 – 33,019 |
31,517.00 |
|
06 |
33,019 – 36,023 |
34,521.00 |
|
07 |
36,023 – 39,027 |
37,525.00 |
|
08 |
39,027 – 42,031 |
40,529.00 |
|
09 |
42,031 – 45,035 |
43,533.00 |
|
10 |
45,035 – 48,039 |
46,537.00 |
Saskatchewan
|
Exemption Code |
Range |
Mid-Point |
|---|---|---|
|
01 |
min – 17,661 |
17,661.00 |
|
02 |
17,661 – 19,934 |
18,797.50 |
|
03 |
19,934 – 22,207 |
21,070.50 |
|
04 |
22,207 – 24,480 |
23,343.50 |
|
05 |
24,480 – 26,753 |
25,616.50 |
|
06 |
26,753 – 29,026 |
27,889.50 |
|
07 |
29,026 – 31,299 |
30,162.50 |
|
08 |
31,299 – 33,572 |
32,435.50 |
|
09 |
33,572 – 35,845 |
34,708.50 |
|
10 |
35,845 – 38,118 |
36,981.50 |
Manitoba
|
Exemption Code |
Range |
Mid-Point |
|---|---|---|
|
01 |
min – 10,855 |
10,855.00 |
|
02 |
10,855 – 12,548 |
11,701.50 |
|
03 |
12,548 – 14,241 |
13,394.50 |
|
04 |
14,241 – 15,934 |
15,087.50 |
|
05 |
15,934 – 17,627 |
16,780.50 |
|
06 |
17,627 – 19,320 |
18,473.50 |
|
07 |
19,320 – 21,013 |
20,166.50 |
|
08 |
21,013 – 22,706 |
21,859.50 |
|
09 |
22,706 – 24,399 |
23,552.50 |
|
10 |
24,399 – 26,092 |
25,245.50 |
Ontario
|
Exemption Code |
Range |
Mid-Point |
|---|---|---|
|
01 |
min – 11,865 |
11,865.00 |
|
02 |
11,865 – 14,421 |
13,143.00 |
|
03 |
14,421 – 16,977 |
15,699.00 |
|
04 |
16,977 – 19,533 |
18,255.00 |
|
05 |
19,533 – 22,089 |
20,811.00 |
|
06 |
22,089 – 24,645 |
23,367.00 |
|
07 |
24,645 – 27,201 |
25,923.00 |
|
08 |
27,201 – 29,757 |
28,479.00 |
|
09 |
29,757 – 32,313 |
31,035.00 |
|
10 |
32,313 – 34,869 |
33,591.00 |
Global Provincial Tax Parameters – British Columbia
Add a new set of Global Provincial Tax Parameters using the effective date of 20230101 or January 01, 2023.
|
Tax Credits |
|
|
|---|---|---|
|
Federal Personal Tax Credit (K1) |
.15 |
|
|
Provincial Personal Tax Credit (K1P) |
.0506 |
|
|
Federal Employment Credit (K4) |
1,368.00 |
(from 1,287.00) |
|
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
|
Minimum Amount |
13,521.00 |
(from 12,719.00) |
|
Threshold |
165,430.00 |
(from 155,625.00) |
|
Threshold |
235,675.00 |
(from 221,708.00) |
|
Maximum Contributions |
|
|
|---|---|---|
|
CPP Maximum Contributions |
3,754.45 |
(from 3,499.80) |
|
EI Maximum Contributions |
1,002.45 |
(from 952.74) |
|
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
|
Flat Amount |
521.00 |
(from 491.00) |
|
|
|
Rate |
.0356 |
Threshold |
23,179.00 |
(from 21,867.00) |
|
Amount |
0 |
Threshold |
37,814.00 |
(from 35,659.00) |
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
Rate |
0 |
Threshold |
0 |
|
Rate |
0 |
Threshold |
0 |
|
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
Global Provincial Tax Parameters – Alberta
Add a new set of Global Provincial Tax Parameters using the effective date of 20230101 or January 01, 2023.
|
Tax Credits |
|
|
|---|---|---|
|
Federal Personal Tax Credit (K1) |
.15 |
|
|
Provincial Personal Tax Credit (K1P) |
.100 |
|
|
Federal Employment Credit (K4) |
1,368.00 |
(from 1,287.00) |
|
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
|
Minimum Amount |
13,521.00 |
(from 12,719.00) |
|
Threshold |
165,430.00 |
(from 155,625.00) |
|
Threshold |
235,675.00 |
(from 221,708.00) |
|
Maximum Contributions |
|
|
|---|---|---|
|
CPP Maximum Contributions |
3,754.45 |
(from 3,499.80) |
|
EI Maximum Contributions |
1,002.45 |
(from 952.74) |
|
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
|
Rate |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
Rate |
0 |
Threshold |
0 |
|
Rate |
0 |
Threshold |
0 |
|
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
Global Provincial Tax Parameters – Saskatchewan
Add a new set of Global Provincial Tax Parameters using the effective date of 20230101 or January 01, 2023.
|
Tax Credits |
|
|
|---|---|---|
|
Federal Personal Tax Credit (K1) |
.15 |
|
|
Provincial Personal Tax Credit (K1P) |
.105 |
|
|
Federal Employment Credit (K4) |
1,368.00 |
(from 1,287.00) |
|
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
|
Minimum Amount |
13,521.00 |
(from 12,719.00) |
|
Threshold |
165,430.00 |
(from 155,625.00) |
|
Threshold |
235,675.00 |
(from 221,708.00) |
|
Maximum Contributions |
|
|
|---|---|---|
|
CPP Maximum Contributions |
3,754.45 |
(from 3,499.80) |
|
EI Maximum Contributions |
1,002.45 |
(from 952.74) |
|
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
|
Rate |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
Rate |
0 |
Threshold |
0 |
|
Rate |
0 |
Threshold |
0 |
|
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
Global Provincial Tax Parameters – Manitoba
Add a new set of Global Provincial Tax Parameters using the effective date of 20230101 or January 01, 2023.
|
Tax Credits |
|
|
|---|---|---|
|
Federal Personal Tax Credit (K1) |
.15 |
|
|
Provincial Personal Tax Credit (K1P) |
.108 |
|
|
Federal Employment Credit (K4) |
1,368.00 |
(from 1,287.00) |
|
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
|
Minimum Amount |
13,521.00 |
(from 12,719.00) |
|
Threshold |
165,430.00 |
(from 155,625.00) |
|
Threshold |
235,675.00 |
(from 221,708.00) |
|
Maximum Contributions |
|
|
|---|---|---|
|
CPP Maximum Contributions |
3,754.45 |
(from 3,499.80) |
|
EI Maximum Contributions |
1,002.45 |
(from 952.74) |
|
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
|
Rate |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
Rate |
0 |
Threshold |
0 |
|
Rate |
0 |
Threshold |
0 |
|
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
Global Provincial Tax Parameters – Ontario
Add a new set of Global Provincial Tax Parameters using the effective date of 20230101 or January 01, 2023.
|
Tax Credits |
|
|
|---|---|---|
|
Federal Personal Tax Credit (K1) |
.15 |
|
|
Provincial Personal Tax Credit (K1P) |
.0505 |
|
|
Federal Employment Credit (K4) |
1,368.00 |
(from 1,287.00) |
|
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
|
Minimum Amount |
13,521.00 |
(from 12,719.00) |
|
Threshold |
165,430.00 |
(from 155,625.00) |
|
Threshold |
235,675.00 |
(from 221,708.00) |
|
Maximum Contributions |
|
|
|---|---|---|
|
CPP Maximum Contributions |
3,754.45 |
(from 3,499.80) |
|
EI Maximum Contributions |
1,002.45 |
(from 952.74) |
|
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
|
Provincial Tax Reduction (S) |
|
|
|
|
|
Flat Amount |
274.00 |
(from 257.00) |
|
|
|
Rate |
2 |
Threshold |
0 |
|
|
Amount |
506.00 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Provincial Surtax V1 |
|
|
|
|
|---|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
|
Rate |
.20 |
Threshold |
5,315.00 |
(from 4,991.00) |
|
Rate |
.36 |
Threshold |
6,802.00 |
(from 6,387.00) |
|
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 |