Whats New for Payroll

Aceti & Associates - Thursday, August 07, 2014

What's new for payroll

Payroll tables

The Canada Revenue Agency will publish a September 1, 2014 version of the Ontario payroll tables to incorporate increases to personal income tax rates tabled in the Ontario budget on July 14, 2014 and passed into law on July 24, 2014. As the changes are retroactive to January 1, 2014, the revised tables will reflect the necessary prorated tax rates to allow employers to withhold the correct additional amounts from employees between September and the final pay of 2014. The changes to the tables apply to employees who earn more than $150,000 in 2014.

Although the tax rate increase publicized in the Budget is 1% or 2%, because the tax increase will be in effect for only the last 4 months of 2014, employees in the above income range will notice a 3% or 6% increase in their actual Ontario tax withholdings during the September to end of December period.