2024 January Payroll Tax Changes
The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 119th Edition. Effective January 1, 2024 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 2024 or 202401. The new Global tables can be added at any time as those tables are date effective.
Statutory Deduction changes for January 2024
CPP | ||
|---|---|---|
the Factor remains the same: | .0595 | |
the Limit has been changed to: | 3867.50 | (from 3754.45) |
basic exemption remains at: | 3500.00 | (extra line) |
the YMPE has been changed to: | 68500.00 | verify any provincial pension deduction parameters |
NEW AS OF JANUARY 2024 YOU MUST INCLUDE THE NEW ADDITION CPP2 SETTINGS:
Extra Values: 3500////68500/.04/73200/ |
|---|
Where 3500 is the annual exemption amount (must be first element) |
Where elements 2 3, 4 are optional |
Where 68500 is the YMPE (must be 5th element) |
Where .04 is the CPP2 contribution rate (must be 6th element) |
Where 73200 is the CPP2 YAMPE (must be 7th element) |
Change the following fields on all CPP deductions for ALL payrolls:
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Deduction Code
Action: Change
Factor | .0595 | |
Limit | 3867.50 | (from 3754.45) |
Extra Value | 3500////68500/.04/73200/ |
EI | ||
|---|---|---|
the Factor: | .0166 | (from .0163) |
the Limit has been changed to: | 63200.00 | (from 61500.00) |
the Maximum EI for the year is: | 1049.12 | (from 1002.45) |
Change the following fields on all EI deductions for ALL payrolls:
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Deduction Code
Action: Change
Factor | .0166 | (from .0163) |
Limit | 63200.00 | (from 61500.00) |
Do a Global Deduction Update for all CPP and EI deduction codes, per payroll.
Payroll Demographics > Global Deduction Changes
Add new EI Tables with the effective date of January 1, 2024 using the factor of .0166 and new Maximum Eligible of 63200.00 (do not change old EI Tables). Note: Do not enter new EI Tables until you are ready to run with the new EI rate.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: EI Table
Action: Add
Global Federal Tax Tables
The Global Federal Tax Tables values would be added using a new effective date of January 01, 2024. Leave the existing Federal Tax Tables as is. The new Federal Tax Table values should be as follows:
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Federal Tax Table
Action: Add
Tax Table Step | Factor 1 | Factor 2 |
|---|---|---|
55867 | .1500 | |
111733 | .2050 | 3073 |
173205 | .2600 | 9218 |
246752 | .2900 | 14414 |
9999999 | .3300 | 24284 |
Global Provincial Tax Tables
The Global Provincial Tax Tables values would be added using a new effective date of January 01, 2024. Leave the existing Provincial Tax Tables as is. The new Global Provincial Tax Table values should be as follows.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Table
Action: Add
British Columbia | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
47937 | .0506 | |
95875 | .0770 | 1266 |
110076 | .1050 | 3950 |
133664 | .1229 | 5920 |
181232 | .1470 | 9142 |
252752 | .1680 | 12948 |
9999999 | .2050 | 22299 |
Alberta | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
148269 | .1000 | |
177922 | .1200 | 2965 |
237230 | .1300 | 4745 |
355845 | .1400 | 7117 |
9999999 | .1500 | 10675 |
Saskatchewan | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
52057 | .1050 | |
148734 | .1250 | 1041 |
9999999 | .1450 | 4016 |
Manitoba | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
47000 | .1080 | |
100000 | .1275 | 917 |
9999999 | .1740 | 5567 |
Ontario | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
51446 | .0505 | |
102894 | .0915 | 2109 |
150000 | .1116 | 4177 |
220000 | .1216 | 5677 |
9999999 | .1316 | 7877 |
Global Federal Exemptions
The Federal index for January 2024 is 4.7%. Add the new Global Federal exemptions using the effective date of January 1, 2024. 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.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Federal Exemptions
Action: Add
Exemption Code | Range | Mid-Point |
|---|---|---|
01 | min -15,705 | 15,705.00 |
02 | 15,705 – 18,410 | 17,057.50 |
03 | 18,410 – 21,115 | 19,762.50 |
04 | 21,115 – 23,820 | 22,467.50 |
05 | 23,820 – 26,525 | 25,172.50 |
06 | 26,525 – 29,230 | 27,877.50 |
07 | 29,230 – 31,935 | 30,582.50 |
08 | 31,935 – 34,640 | 33,287.50 |
09 | 34,640 – 37,345 | 35,992.50 |
10 | 37,345 – 40,050 | 38,697.50 |
Global Provincial Exemptions
The Global Provincial Exemption amounts for January 1, 2024. Add the new Provincial exemptions using the effective date of January 1, 2024. 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.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Exemptions
Action: Add
British Columbia
Exemption Code | Range | Mid-Point |
|---|---|---|
01 | min – 12,580 | 12,580.00 |
02 | 12,580 – 15,411 | 13,995.50 |
03 | 15,411 – 18,242 | 16,826.50 |
04 | 18,242 – 21,073 | 19,657.50 |
05 | 21,073 – 23,904 | 22,488.50 |
06 | 23,904 – 26,735 | 25,319.50 |
07 | 26,735 – 29,566 | 28,150.50 |
08 | 29,566 – 32,397 | 30,981.50 |
09 | 32,397 – 35,228 | 33,812.50 |
10 | 35,228 – 38,059 | 36,643.50 |
Alberta
Exemption Code | Range | Mid-Point |
|---|---|---|
01 | min – 21,885 | 21,885.00 |
02 | 21,885 – 25,015 | 23,450.00 |
03 | 25,015 – 28,145 | 26,580.00 |
04 | 28,145 – 31,275 | 29,710.00 |
05 | 31,275 – 34,405 | 32,840.00 |
06 | 34,405 – 37,535 | 35,970.00 |
07 | 37,535 – 40,665 | 39,100.00 |
08 | 40,665 – 43,795 | 42,230.00 |
09 | 43,795 – 46,925 | 45,360.00 |
10 | 46,925 – 50,055 | 48,490.00 |
Saskatchewan
Exemption Code | Range | Mid-Point |
|---|---|---|
01 | min – 18,491 | 18,491.00 |
02 | 18,491 – 20,871 | 19,681.00 |
03 | 20,871 – 23,251 | 22,061.00 |
04 | 23,251 – 25,631 | 23,441.00 |
05 | 25,631 – 28,011 | 26,821.00 |
06 | 28,011 – 30,391 | 29,201.00 |
07 | 30,391 – 32,771 | 31,581.00 |
08 | 32,771 – 35,151 | 33,961.00 |
09 | 35,151 – 37,531 | 36,341.00 |
10 | 37,531 – 39,911 | 38,721.00 |
Manitoba
Exemption Code | Range | Mid-Point |
|---|---|---|
01 | min – 15,780 | 15,780.00 |
02 | 15,780 – 17,473 | 16,626.50 |
03 | 17,473 – 19,166 | 18,319.50 |
04 | 19,166 – 20,859 | 20,012.50 |
05 | 20,859 – 22,552 | 21,705.50 |
06 | 22,552 – 24,245 | 23,398.50 |
07 | 24,245 – 25,938 | 25,091.50 |
08 | 25,938 – 27,631 | 26,784.50 |
09 | 27,631 – 29,324 | 28,477.50 |
10 | 29,324 – 31,017 | 30,170.50 |
Ontario
Exemption Code | Range | Mid-Point |
|---|---|---|
01 | min – 12,399 | 12,399.00 |
02 | 12,399 – 15,070 | 13,734.50 |
03 | 15,070 – 17,741 | 16,405.50 |
04 | 17,741 – 20,412 | 19,076.50 |
05 | 20,412 – 23,083 | 21,747.50 |
06 | 23,083 – 25,754 | 24,418.50 |
07 | 25,754 – 28,425 | 27,089.50 |
08 | 28,425 – 31,096 | 29,760.50 |
09 | 31,096 – 33,767 | 32,431.50 |
10 | 33,767 – 36,438 | 35,102.50 |
Global Provincial Tax Parameters – British Columbia
Add a new set of Global Provincial Tax Parameters using the effective date of 20240101 or January 01, 2024.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits | ||
|---|---|---|
Federal Personal Tax Credit (K1) | .15 | |
Provincial Personal Tax Credit (K1P) | .0506 | |
Federal Employment Credit (K4) | 1,433.00 | (from 1,368.00) |
Federal Basic Personal Amount (BPAF) | ||
|---|---|---|
Minimum Amount | 14,156.00 | (from 13,521.00) |
Threshold | 173,205.00 | (from 165,430.00) |
Threshold | 246,752.00 | (from 235,675.00) |
Maximum Contributions | ||
|---|---|---|
CPP Maximum Contributions | 3,867.50 | (from 3,754.45) CPP1 Limit Only |
EI Maximum Contributions | 1,049.12 | (from 1,002.45) |
Provincial Tax Reduction (S) | ||||
|---|---|---|---|---|
Flat Amount | 547.00 | (from 521.00) | ||
Rate | .0356 | Threshold | 24,338.00 | (from 23,179.00) |
Amount | 0 | Threshold | 39,703.00 | (from 37,814.00) |
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 20240101 or January 01, 2024.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits | ||
|---|---|---|
Federal Personal Tax Credit (K1) | .15 | |
Provincial Personal Tax Credit (K1P) | .100 | |
Federal Employment Credit (K4) | 1,433.00 | (from 1,368) |
Federal Basic Personal Amount (BPAF) | ||
|---|---|---|
Minimum Amount | 14,156.00 | (from 13,521.00) |
Threshold | 173,205.00 | (from 165,430.00) |
Threshold | 246,752.00 | (from 235,675.00) |
Maximum Contributions | ||
|---|---|---|
CPP Maximum Contributions | 3,867.50 | (from 3,754.45) CPP1 Limit Only |
EI Maximum Contributions | 1,049.12 | (from 1,002.45) |
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 20240101 or January 01, 2024.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits | ||
|---|---|---|
Federal Personal Tax Credit (K1) | .15 | |
Provincial Personal Tax Credit (K1P) | .105 | |
Federal Employment Credit (K4) | 1,433.00 | (from 1,368.00) |
Federal Basic Personal Amount (BPAF) | ||
|---|---|---|
Minimum Amount | 14,156.00 | (from 13,521.00) |
Threshold | 173,205.00 | (from 165,430.00) |
Threshold | 246,752.00 | (from 235,675.00) |
Maximum Contributions | ||
|---|---|---|
CPP Maximum Contributions | 3,867.50 | (from 3,754.45) CPP1 Limit Only |
EI Maximum Contributions | 1,049.12 | (from 1,002.45) |
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 20240101 or January 01, 2024.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits | ||
|---|---|---|
Federal Personal Tax Credit (K1) | .15 | |
Provincial Personal Tax Credit (K1P) | .108 | |
Federal Employment Credit (K4) | 1,433.00 | (from 1,368.00) |
Federal Basic Personal Amount (BPAF) | ||
|---|---|---|
Minimum Amount | 14,156.00 | (from 13,521.00) |
Threshold | 173,205.00 | (from 165,430.00) |
Threshold | 246,752.00 | (from 235,675.00) |
Maximum Contributions | ||
|---|---|---|
CPP Maximum Contributions | 3,867.50 | (from 3,754.45) CPP1 Limit Only |
EI Maximum Contributions | 1,049.12 | (from 1,002.45) |
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 20240101 or January 01, 2024.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits | ||
|---|---|---|
Federal Personal Tax Credit (K1) | .15 | |
Provincial Personal Tax Credit (K1P) | .0505 | |
Federal Employment Credit (K4) | 1,433.00 | (from 1,368.00) |
Federal Basic Personal Amount (BPAF) | ||
|---|---|---|
Minimum Amount | 14,156.00 | (from 13,521.00) |
Threshold | 173,205.00 | (from 165,430.00) |
Threshold | 246,752.00 | (from 235,675.00) |
Maximum Contributions | ||
|---|---|---|
CPP Maximum Contributions | 3,867.50 | (from 3,754.45) CPP1 Limit Only |
EI Maximum Contributions | 1,049.12 | (from 1,002.45) |
Provincial Tax Reduction (S) | ||||
|---|---|---|---|---|
Flat Amount | 286.00 | (from 274.00) | ||
Rate | 2 | Threshold | 0 | |
Amount | 529.00 | Threshold | 0 | |
Amount | 0 | Threshold | 0 | |
Amount | 0 | Threshold | 0 |
Provincial Surtax V1 | ||||
|---|---|---|---|---|
Flat Amount | 0 | |||
Rate | .20 | Threshold | 5,554.00 | (from 5,315.00) |
Rate | .36 | Threshold | 7,108.00 | (from 6,802.00) |
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 |