2023 January Payroll Tax Changes

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
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 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
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 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
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 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
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 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