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• Online calculators and formulas
• Manual calculations
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Online calculators and formulas

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  Payroll Deductions Online Calculator (PDOC)

  Use the PDOC to easily calculate federal, provincial (except for Quebec) and territorial payroll deductions. PDOC calculates payroll deductions for the most common pay periods (such as weekly or biweekly), based on exact salary figures.

  The calculator will confirm the deductions you must include on your official statement of earnings.

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  Revenu Quebec's WebRAS for Quebec provincial payroll deductions

  Use the WebRAS to calculate provincial payroll deductions for Quebec.

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  Payroll deductions formulas

  Use the following payroll deductions formulas to calculate the required CPP, EI and income tax deductions if you have developed an in-house payroll solution or are a payroll service provider:

  • Payroll Deductions Formulas – 119th Edition – Effective January 1, 2024
  • Payroll Deductions Formulas – 118th Edition – Effective July 1, 2023
  • Payroll Deductions Formulas – 117th Edition – Effective January 1, 2023
  • Payroll Deductions Formulas – 116th Edition – Effective July 1, 2022
  • Payroll Deductions Formulas – 115th Edition – Effective January 1, 2022

  Caution for employers using software programs, in-house payroll programs, and bookkeeping methods

  If the computer formulas you want to use are different from ours, you have to submit them to any tax service office or tax centre for approval.

  CPP enhancement

  As of 2019, the Canada Pension Plan is being enhanced over a 7 year phase-in. For more information, go to Canada Pension Plan Enhancement.

  Over deducted CPP contributions

  For Canada Pension Plan (CPP) purposes, contributions are not calculated from the first dollar of pensionable earnings. Instead, they are calculated using the amount of pensionable earnings minus a basic exemption amount that is based on the period of employment.

  If used improperly, some payroll software programs, in-house payroll programs, and bookkeeping methods can calculate unwarranted or incorrect refunds of CPP contributions for both employees and employers. The improper calculations treat all employment as if it were full-year employment, which incorrectly reduces both the employee's and employer's contributions.

  For example, when a part-year employee does not qualify for the full annual exemption, a program may indicate that the employer should report a CPP over deduction in box 22 of the T4 slip. This may result in an unwarranted refund of tax to the employee when the employee files his or her income tax and benefit return.

  When employees receive refunds for CPP over deductions, their pensionable service is adversely affected. This could affect their CPP income when they retire. In addition, employers who report such over deductions receive a credit they are not entitled to because the employee worked for them for less than 12 months.

  Learn more: Make corrections before filing.

Manual calculations

Depending on the type of payment, you may also need to manually calculate the CPP, EI and income tax deductions.

Steps

1. Calculate CPP contributions deductions

   How to use the CPP contributions tables and how to manually calculate the amount to withhold on the base CPP contributions and first additional CPP contributions

2. Calculate second additional CPP contributions (CPP2) deductions

   New – 2024 How to use the CPP2 contributions tables and how to manually calculate the amount to withhold on the CPP2 contributions

3. Calculate EI premiums deductions

   How to use the EI premiums tables and how to manually calculate the amount to withhold

4. Calculate income tax deductions

   Determine which federal, provincial/territorial claim codes to use, how to use the income tax tables and how to manually calculate the amount to withhold

5. Calculate the GST/HST to remit on benefits

   How to calculate the GST/HST on employee benefits

Keep up-to-date by subscribing to our mailing lists

To get quick and easy access to new payroll deductions tables and other recently announced tax information, you can subscribe, free of charge, to:

• Payroll electronic mailing list
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