Atrieve Payroll

2025 January Payroll Tax Changes

The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 120th Edition.  Effective January 1, 2025 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 2025 or 202501. The new Global tables can be added at any time as those tables are date effective.

Statutory Deduction changes for January 2025

CPP

 

 

the Factor remains the same:       

.0595

 

the Limit has been changed to:

4034.10

(from 3867.50)

basic exemption remains at: 

3500.00

(extra line)

the YMPE has been changed to: 

71300.00

verify any provincial pension deduction parameters

NEW AS OF JANUARY 2024 YOU MUST INCLUDE THE NEW ADDITION CPP2 SETTINGS:

Extra Values: 3500////71300/.04/81200/

Where 3500 is the annual exemption amount (must be first element)

Where elements 2 3, 4 are optional

Where 71300 is the YMPE (must be 5th element)

Where .04 is the CPP2 contribution rate (must be 6th element)

Where 81200 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

4034.10

(from 3867.50)

Extra Value

3500////71300/.04/81200/

 

EI

 

 

the Factor:

 .0164

(from .0166)

the Limit has been changed to:

65700.00

(from 63200.00) 

the Maximum EI for the year is:

1077.48

(from 1049.12)

 

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

Payroll System Maintenance > Payroll Database Maintenance

Setup Table: Deduction Code

Action: Change

 

Factor

.0164

(from .0166)

Limit

65700.00

(from 63200.00)

 

 

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, 2025 using the factor of .0164 and new Maximum Eligible of 65700.00 (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, 2025.  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

57375

.1500

 

114750

.2050

3156

177882

.2600

9467

253414

.2900

14803

9999999

.3300

24940

 

 

 

Global Provincial Tax Tables

 

The Global Provincial Tax Tables values would be added using a new effective date of January 01, 2025.  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

49279

.0506

 

98560

.0770

1301

113158

.1050

4061

137407

.1229

6086

186306

.1470

9398

259829

.1680

13310

9999999

.2050

22924

Alberta

 

 

Tax Table Step

Factor 1

Factor 2

151234

.1000

 

181481

.1200

3025

241974

.1300

4839

362961

.1400

7259

9999999

.1500

10889

Saskatchewan

 

 

Tax Table Step

Factor 1

Factor 2

53463

.1050

 

152750

.1250

1069

9999999

.1450

4124

Manitoba

 

 

Tax Table Step

Factor 1

Factor 2

47564

.1080

 

101200

.1275

926

9999999

.1740

5633

Ontario

 

 

Tax Table Step

Factor 1

Factor 2

52886

.0505

 

105775

.0915

2168

150000

.1116

4294

220000

.1216

5794

9999999

.1316

7994

 

Global Federal Exemptions

 

The Federal index for January 2025 is 2.7%.   Add the new Global Federal exemptions using the effective date of January 1, 2025.  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 –  16,129

16,129.00

02

16,129 – 18,907

17,518.00

03

18,907 – 21,685

20,296.00

04

21,685 – 24,463

23,074.00

05

24,463 – 27,241

25,852.00

06

27,241 – 30,019

28,630.00

07

30,019 – 32,797

31,480.00

08

32,797 – 35,575

34,186.00

09

35,575 – 38,353

36,964.00

10

38,353 – 41,131

39,742.00

 

Global Provincial Exemptions

 

The Global Provincial Exemption amounts for January 1, 2025.   Add the new Provincial exemptions using the effective date of January 1, 2025.  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 – 12,932

12,932.00

02

12,932 – 15,842

14,387.00

03

15,842 – 18,752

17,297.00

04

18,752 – 21,662

20,207.00

05

21,662 – 24,572

23,117.00

06

24,572 – 27,482

26,027.00

07

27,482 – 30,392

28,937.00

08

30,392 – 33,302

31,847.00

09

33,302 – 36,212

34,757.00

10

36,212 – 39,122

37,667.00

        

 

Alberta

Exemption Code

Range

Mid-Point

01

     min – 22,323

   22,323.00

02

22,323 – 25,516

   23,919.50

03

25,516 – 28,709

   27,112.50

04

28,709 – 31,902

   30,305.50

05

31,902 – 35,095

   33,498.50

06

35,095 – 38,288

   36,691.50

07

38,288 – 41,481

   39,884.50

08

41,481 – 44,674

   43,077.50

09

44,674 – 47,867

   46,270.50

10

47,867 – 51,060

   49,463.50

 

Saskatchewan

Exemption Code

Range

Mid-Point

01

     min – 18,991

 18,991.00

02

18,991 – 21,435

 20,213.00

03

21,435 – 23,879

 22,657.00

04

23,879 – 26,323

 25,101.00

05

26,323 – 28,767

 27,545.00

06

28,767 – 31,211

 29,989.00

07

31,211 – 33,655

 32,433.00

08

33,655 – 36,099

 34,877.00

09

36,099 – 38,543

 37,321.00

10

38,543 – 40,987

 39,765.00

 

Manitoba

Exemption Code

Range

Mid-Point

01

     min –  15,969

 15,969.00

02

15,969 – 17,662

 16,815.50

03

17,662 – 19,355

 18,508.50

04

19,355 – 21,048

 20,201.50

05

21,048 – 22,741

 21,894.50

06

22,741 – 24,434

 23,587.50

07

24,434 – 26,127

 25,280.50

08

26,127 – 27,820

 26,973.50

09

27,820 – 29,513

 28,666.50

10

29,513 – 31,206

 30,359.50

 

Ontario

Exemption Code

Range

Mid-Point

01

     min – 12,747

 12,747.00

02

12,747 – 15,493

 14,120.00

03

15,493 – 18,239

 16,866.00

04

18,239 – 20,985

 19,612.00

05

20,985 – 23,731

 22,358.00

06

23,731 – 26,477

 25,104.00

07

26,477 – 29,223

 27,850.00

08

29,223 – 31,969

 30,596.00

09

31,969 – 34,715

 33,342.00

10

34,715 – 37,461

 36,088.00

 

Global Provincial Tax Parameters – British Columbia

 

Add a new set of Global Provincial Tax Parameters using the effective date of 20250101 or January 01, 2025. 

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)

1,471.00

(from 1,433.00)

Federal Basic Personal Amount (BPAF)

 

 

Minimum Amount

14,538.00

(from 14,156.00)

Threshold

177,882.00

(from 173,205.00)

Threshold

253,414.00

(from 246,752.00)

Provincial Basic Personal Amount (BPAP)

 (not applicable for BC at this time)

Minimum Amount

0

Threshold

0

Threshold

0

Maximum Contributions

 

 

CPP Maximum Contributions

4,034.10

(from 3,867.50) CPP1 Limit Only

CPP2 Maximum Contributions

396.00

(from 188.00) CPP2 Limit Only

EI Maximum Contributions

1,077.48

(from 1,049.12)

Provincial Tax Reduction (S)

 

 

 

 

Flat Amount (S2)

562.00

(from 547.00)

 

 

Rate

.0356

Threshold

25,020.00

(from 24,338.00)

Amount

0

Threshold

40,807.00

(from 39,703.00)

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 20250101 or January 01, 2025. 

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)

1,471.00

(from 1,433.00)

Federal Basic Personal Amount (BPAF)

 

 

Minimum Amount

14,538.00

(from 14,156.00)

Threshold

177,882.00

(from 173,205.00)

Threshold

253,414.00

(from 246,752.00)

Provincial Basic Personal Amount (BPAP)

 (not applicable for Alberta at this time)

Minimum Amount

0

Threshold

0

Threshold

0

Maximum Contributions

 

 

CPP Maximum Contributions

4,034.10

(from 3,867.50) CPP1 Limit Only

CPP2 Maximum Contributions

396.00

(from 188.00) CPP2 Limit Only

EI Maximum Contributions

1,077.48

(from 1,049.12)

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 20250101 or January 01, 2025. 

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)

1,471.00

(from 1,433.00)

Federal Basic Personal Amount (BPAF)

 

 

Minimum Amount

14,538.00

(from 14,156.00)

Threshold

177,882.00

(from 173,205.00)

Threshold

253,414.00

(from 246,752.00)

Provincial Basic Personal Amount (BPAP)

 (not applicable for Saskatchewan at this time)

Minimum Amount

0

Threshold

0

Threshold

0

Maximum Contributions

 

 

CPP Maximum Contributions

4,034.10

(from 3,867.50) CPP1 Limit Only

CPP2 Maximum Contributions

396.00

(from 188.00) CPP2 Limit Only

EI Maximum Contributions

1,077.48

(from 1,049.12)

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 20250101 or January 01, 2025. 

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)

1,471.00

(from 1,433.00)

Federal Basic Personal Amount (BPAF)

 

 

Minimum Amount

14,538.00

(from 14,156.00)

Threshold

177,882.00

(from 173,205.00)

Threshold

253,414.00

(from 246,752.00)

Provincial Basic Personal Amount (BPAP)

 (new as of 2025 for Manitoba - BPAMB)

Minimum Amount

0

Threshold

200,000.00

Threshold

400,000.00

Maximum Contributions

 

 

CPP Maximum Contributions

4,034.10

(from 3,867.50) CPP1 Limit Only

CPP2 Maximum Contributions

396.00

(from 188.00) CPP2 Limit Only

EI Maximum Contributions

1,077.48

(from 1,049.12)

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 20250101 or January 01, 2025. 

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)

1,471.00

(from 1,433.00)

Federal Basic Personal Amount (BPAF)

 

 

Minimum Amount

14,538.00

(from 14,156.00)

Threshold

177,882.00

(from 173,205.00)

Threshold

253,414.00

(from 246,752.00)

Provincial Basic Personal Amount (BPAP)

 (not applicable for Ontario at this time)

Minimum Amount

0

Threshold

0

Threshold

0

Maximum Contributions

 

 

CPP Maximum Contributions

4,034.10

(from 3,867.50) CPP1 Limit Only

CPP2 Maximum Contributions

396.00

(from 188.00) CPP2 Limit Only

EI Maximum Contributions

1,077.48

(from 1,049.12)

Provincial Tax Reduction (S)

 

 

 

 

Flat Amount

294.00

(from 286.00)

 

 

Rate

2

Threshold

0

 

Amount

544.00

Threshold

0

 

Amount

0

Threshold

0

 

Amount

0

Threshold

0

 

Provincial Surtax V1

 

 

 

 

Flat Amount

0

 

 

 

Rate

.20

Threshold

5,710.00

(from 5,554.00)

Rate

.36

Threshold

7,307.00

(from 7,108.00)

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