Payroll Deductions Tables - Income tax deductions (BC) PART1

What's new as of July 1, 2015

The major changes made to this guide, since the last edition, are outlined.

This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective July 1, 2015. At the time of publishing, some of these proposed changes were not law. We recommend that you use the new payroll deductions tables in this guide for withholding starting with the first payroll in July 2015.

There is no change to the federal income tax rates for July 2015.

The British Columbia budget, tabled on February 17, 2015, announced changes to the British Columbia Tax Reduction. Effective for the 2015 tax year, the tax reduction is changed from $412 to $432 and the tax reduction phase-out threshold is also changed from $18,327 to $19,000. The phase-out rate is changed from 3.2 % to 3.5 % of net income.

Since some employees have been taxed at a different rate for the first six months, a prorated tax rate will apply to the remaining six months, commencing with the first payroll in July.

Effective July 1, 2015, the British Columbia Tax Reduction is $452 and the tax reduction phase-out threshold is $19,673. The tax reduction phase-out rate is 3.8 % of net income.

Payroll Deductions Tables

You can download Guides T4008, Payroll Deductions Supplementary Tables, and T4032, Payroll Deductions Tables, from our webpage at www.cra.gc.ca/payroll. You can also choose to print only the pages or information that you need.

Guide T4032, Payroll Deductions Tables, is also available on CD for use on any computer with or without Internet access. You can order a copy at www.cra.gc.ca/orderforms or by calling 1-800-959-5525.

Paper copies remain available for employers who do not use a computer. To get a copy, call us at 1-800-959-5525.

Payroll Deductions Online Calculator

For your 2015 payroll deductions, you can use our Payroll Deductions Online Calculator (PDOC). The online calculator makes it easier to calculate payroll deductions. PDOC is available at www.cra.gc.ca/pdoc.

PDOC calculates your payroll deductions. It calculates deductions for any pay period, province (except Quebec) and territory. The calculation is based on exact salary figures.

Let us notify you

We provide an electronic service that can notify you immediately, free of charge, of any changes for payroll deductions.

To subscribe, visit our webpage at www.cra.gc.ca/lists and enter your business's email address for each mailing list that you want to join.

Who should use this guide?

This guide is intended for the employer and the payer. It contains tables for federal and provincial tax deductions, CPP contributions and EI premiums. It will help you determine the payroll deductions for your employees or pensioners.

For more information on deducting, remitting, and reporting payroll deductions, go to the following employers' guides:

• T4001, Employers' Guide – Payroll Deductions and Remittances
• T4130, Employers' Guide – Taxable Benefits and Allowances
• RC4110, Employee or Self-employed?
• RC4120, Employers' Guide – Filing the T4 Slip and Summary
• RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary

These guides are available on our website at www.cra.gc.ca. You can also get the guides by completing the order form available on our Web site or by calling 1-800-959-5525.

Note

You may want to keep the 2014 edition of Payroll Deductions Tables until the end of 2015. That edition may help you to resolve any pensionable and insurable earnings review (PIER) deficiencies that we identify in processing your 2014 T4 return.