Payroll Deductions Tables - Income tax deductions (BC) PART5

Tax deductions tables

If you are using the income tax tables in this guide to determine your employees' and pensioners' total tax deductions, you have to look up the amounts in the federal tax table and the provincial tax table.

To determine the total tax you deduct for the pay period, you must add the federal and provincial tax amounts.

Even if the period of employment for which you pay a salary is less than a full pay period, you must continue to use the tax deductions table that corresponds to your regular pay period.

Federal (Section D)

• Find the pages in Section D that correspond to your pay period.
• To find the range that corresponds to your employee's taxable income (this includes any taxable benefits), look down the "Pay" column.
• In the row under the applicable claim code, you will find the amount of federal tax that you should withhold from your employee's pay (for more information, go to the section called "Claim codes" and Chart 3).

Provincial (Section E)

• Find the pages in Section E that correspond to your pay period.
• To find the range that includes your employee's taxable income (this includes any taxable benefits), look down the "Pay" column.
• In the row under the applicable claim code, you will find the amount of provincial tax that you should withhold from your employee's pay (for more information, go to the section called "Claim codes" and Chart 4).

Example

You are an employer in British Columbia. Sara, your employee, earns $1,815 a week in 2015. She has a federal claim code 1 and a provincial claim code 1.

To determine Sara's federal tax deductions, you look at the weekly federal tax deductions table and find the range for her weekly salary, which is 1811-1827. The federal tax deductions for $1,815 weekly under claim code 1 is $298.20.

To determine Sara's provincial tax deductions, you use the weekly provincial tax deductions table. In the British Columbia tax deductions table, the provincial tax deduction for $1,815 weekly under claim code 1 is $120.15.

Sara's total tax deduction is $418.35 ($298.20 + $120.15). This amount of taxes will be included in your remittance to us.