Payroll Deductions Tables - Income tax deductions (BC) PART3

British Columbia tax reduction

For 2015, British Columbia's tax reduction has been revised as follows:

• Taxes payable will be reduced by up to $452 for individuals with annual income of $19,673 or less.
• Individuals with an annual income between $19,673 and $31,567.74 will be eligible for a partial reduction.
• The reduction of $452 will be decreased by 3.8% of income above $19,673, resulting in a nil reduction for an annual income of $31,567.74 or more.

There is no need to apply for the British Columbia tax reduction. Individuals that are eligible will notice the benefit in their paycheques or pension benefits through a lower withholding of British Columbia personal income tax.

Personal amounts

For 2015 the provincial non-refundable personal tax credits are.

Basic personal amount $ 9,938

Spouse or common-law partner amount $ 8,509

Amount for an eligible dependant $ 8,509

For more detailed information on the personal amounts, go to Form TD1BC, 2015 British Columbia Personal Tax Credits Return.

Canada Pension Plan (CPP) and Employment Insurance (EI)

CPP contributions for 2015

Maximum pensionable earnings $53,600

Annual basic exemption $3,500

Maximum contributory earnings $50,100

Contribution rate (%) 4.95

Maximum employee contribution $2,479.95

Maximum employer contribution $2,479.95

You stop deducting CPP when the employee reaches the maximum contribution for the year.

Note

As an employer, you have to remit these deductions along with your share of CPP contributions.

For more information, go to Chapter 2, "Canada Pension Plan contributions," in Guide T4001, Employer's Guide – Payroll Deductions and Remittances.

EI premiums for 2015

Maximum annual insurable earnings $49,500

Premium rate (%) 1.88

Maximum annual employee premium $930.60

You stop deducting EI when the employee reaches the maximum annual premium.

Note

As an employer, you have to remit these deductions along with your share of EI premiums.

For more information, go to Chapter 3, "Employment Insurance premiums," in Guide T4001, Employer's Guide – Payroll Deductions and Remittances.

Personal tax credits returns (TD1 forms)

You may have to ask your employees or your pensioners to complete a federal and a provincial personal tax credits return using a federal Form TD1 and a provincial Form TD1.

For more information, go to Chapter 5, "Deducting income tax," in Guide T4001, Employers' Guide – Payroll Deductions and Remittances.

Claim codes

The total personal amount an employee claims on a TD1 form will determine which claim code you use. For 2015, the claim amounts that correspond to the federal claim codes are not the same as the claim amounts that correspond to the provincial claim codes. Go to Chart 3 and Chart 4.

Explanation of claim codes

Claim code 0

This code represents no claim amount. If the federal claim code is "0" because the employee is a non-resident, the provincial claim code must also be "0." This code may also be used if the employee indicated they have more than one employer or payer at the same time and have entered “0” on the front page of Form TD1 for 2015.