Payroll Deductions Tables - Income tax deductions (BC) PART2

What if your pay period is not in this guide?

This guide contains the most common pay periods: weekly, biweekly (every two weeks), semi-monthly, and monthly. If you have unusual pay periods, such as daily (240 working days), or 10, 13, or 22 pay periods a year, go to the Guide T4008, Payroll Deductions Supplementary Tables, or the Payroll Deductions Online Calculator (PDOC) to determine tax deductions.

Which provincial or territorial tax table should you use?

Before you decide which tax table to use, you have to determine your employee's province or territory of employment. This depends on whether or not you require the employee to report for work at your place of business.

If the employee reports for work at your place of business, the province or territory of employment is considered to be the province or territory where your business is located.

To withhold payroll deductions, use the tax table for that province or territory of employment.

If you do not require the employee to report for work at your place of business, the province or territory of employment is the province or territory in which your business is located and from which you pay your employee's salary.

For more information and examples, go to Chapter 1, "General Information," in Guide T4001, Employers' Guide – Payroll Deductions and Remittances.

Federal tax for 2015

Indexing for 2015

For 2015, the federal income thresholds, the personal amounts and the Canada employment credit have been changed based on changes in the consumer price index.

The federal indexing factor for January 1, 2015 is 1.7%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing change, whether or not they file Form TD1, 2015 Personal Tax Credits Return.

Tax rates and income thresholds

For 2015, the tax rates and income thresholds are:

Chart 1 – 2015 federal tax rates and income thresholds

Annual taxable income ($) From – To	Federal tax rate (%) R	Constant ($) K
0.00 to 44,701.00	15%	0
44,701.01 to 89,401.00	22%	3,129
89,401.01 to 138,586.00	26%	6,705
138,586.01 and over	29%	10,863

Canada employment credit

The non-refundable Canada employment amount is built into the federal payroll deductions tables. The federal Canada employment amount is the lesser of:

• $1,146; and
• the individual's employment income for the year.

The maximum annual non-refundable tax credit is $171.90.

Pension income is not eligible for this credit. If you are paying pension income, use the Payroll Deductions Online Calculator to find the tax deduction.

Personal amounts

The federal personal amounts for 2015 are:

Basic personal amount $ 11,327

Spouse or common-law partner amount $ 11,327

Amount for an eligible dependant $ 11,327

For more detailed information on the personal amounts, go to Form TD1.

Provincial tax for 2015

Provincial indexing for 2015

For 2015, the provincial income thresholds and the British Columbia tax reduction are indexed. They have been changed based on changes in the consumer price index.

The indexing factor for January 1, 2015, is 0.7%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing change, whether or not they file Form TD1BC, 2015 British Columbia Personal Tax Credits Return.

Tax rates and income thresholds

For 2015, the provincial’s tax rates and income thresholds are:

Chart 2 – British Columbia tax rates and income thresholds

Annual taxable income ($) From – To	Provincial tax rate (%) V	Constant ($) KP
0.00 to 37,869.00	5.06%	0
37,869.01 to 75,740.00	7.70%	1,000
75,740.01 to 86,958.00	10.50%	3,120
86,958.01 to 105,592.00	12.29%	4,677
105,592.01 to 151,050.00	14.70%	7,222
151,050.01 and over	16.80%	10,394