What's new and updated for payroll

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What's new and updated for payroll

Find out about new and updated payroll content, including legislative changes and Canada Revenue Agency (CRA) administrative policies. You can also learn about payroll consultations or upcoming events, who can attend and how to register for free webinars hosted by the CRA.


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Payroll topics

  • Open or manage a payroll account
  • Set up and manage employee payroll information
  • Calculate payroll deductions and contributions
  • Remit (pay) payroll deductions and contributions
  • File payroll information returns (slips and summaries)

Payroll webinars and consultations

  • Webinars
  • Consultations

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  • New 2024 T4 slip with new codes - Employee security (stock) options

    Brief description

    Beginning June 25, 2024, under proposed legislation, the security options deductions under paragraphs 110(1)(d) and 110(1)(d.1) of the ITA will also be reduced to 1/3.

    As a result of this proposed change, your reporting obligations for employee security options for the 2024 calendar year and after have changed.

    • Updated codes

      • Code 38 – Security options benefits - Before June 25, 2024
      • Code 39 – Security options deduction – 110(1)(d) - Before June 25, 2024
      • Code 41 – Security options deduction – 110(1)(d.1) - Before June 25, 2024

    • New codes

      • Code 90 – Security options benefits - On or after June 25, 2024
      • Code 91 – Security options deduction – 110(1)(d) - On or after June 25, 2024
      • Code 92 – Security options deduction – 110(1)(d.1) - On or after June 25, 2024

    These new and updated codes must be used for T4 slips filed for calendar year 2024 and after to report taxable employee security (stock) options.


    Published on: November 28, 2024

  • 2025 CPP and CPP2 rates and maximums

    Brief description

    The CRA announced the maximum pensionable earnings, maximum additional pensionable earnings and maximum CPP and CPP2 contributions for 2025.

    Learn more: Canada Revenue Agency announces maximum pensionable earnings and contributions for 2025


    Published on: November 1, 2024

  • Free webinar - Payroll responsibilities for employers

    Brief description

    Free webinar on payroll responsibilities for employers

    The Canada Revenue Agency (CRA) is hosting a free webinar to help employers with the key aspects of payroll management. Whether you're just starting out or need a refresher, we can help you navigate payroll correctly.

    Topics to be discussed in the webinar include:

    • Payroll obligations to CRA
    • Deductions and contributions
    • Tools for calculating types of pay and withholdings
    • Books and records
    • Remitting
    • Reporting


    This webinar is for you if you:

    • Have a business with employees
    • Regularly complete payroll
    • Are unsure if you are paying your employees correctly while staying compliant


    Registration closed The webinar is on Thursday, October 31, 2024, at the following times:

    Payroll responsibilities for employers - Time of webinar for different time zones in Canada
    Session Newfoundland Atlantic Eastern Central Mountain Pacific
    English
    		 2:30 p.m. 2 p.m. 1 p.m. 12 p.m. 11 a.m. 10 a.m.
    French
    		 11:30 a.m. 11 a.m. 10 a.m. 9 a.m. 8 a.m. 7 a.m.


    Published on: October 21, 2024

  • Rewritten content - Payments to fishers

    • Reason for change: Clarity, completeness and plain language
    • Effective date: Not applicable
    • Refer to: Payments to fishers

    Brief description

    For Employment Insurance (EI) purposes, you may be considered a designated employer if you provide payments to a self-employed fisher.

    Content has been updated for clarity, completeness and plain language. No changes were made to the current CRA administrative policy.


    Published on: October 7, 2024

  • 2025 EI premium rates and maximum for EI

    Brief description

    The Canada Employment Insurance Commission (CEIC) announced the new rates for 2025.

    Learn more: Canada Employment Insurance Commission confirms 2025 Employment Insurance premium rate


    Published on: September 27, 2024

  • Rewritten content - Payments and earnings related to taxi drivers and drivers of other passenger-carrying vehicles

    Brief description

    For Employment Insurance (EI) purposes, you may be considered an employer of the self-employed taxi driver or driver of other passenger-carrying vehicles, even if you do not provide a payment to them.

    Content has been updated for clarity, completeness and plain language. No changes were made to the existing legislative requirement.


    Published on: September 6, 2024

  • Rewritten content - Payments and earnings related to barbers and hairdressers

    Brief description

    For Employment Insurance (EI) purposes, as the owner or operator of an establishment that offers barbering and hairdressing services, you may be considered an employer of the self-employed barber and hairdresser, even if you do not provide a payment to them.

    Content has been updated for clarity, completeness and plain language. No changes were made to the existing legislative requirement.


    Published on: September 6, 2024

  • 2025 Guide T4127 - Payroll Deductions Formulas - 120th Edition

    Brief description

    If you are a payroll software provider or a company which develops its own in-house payroll solution, you can now consult the T4127 120th Edition effective January 1st, 2025.

    This guide has the formulas you need to determine federal, provincial (except Quebec), and territorial income taxes, Canada Pension Plan (CPP) contributions, and employment insurance (EI) premium deductions.


    Published on: July 30, 2024

  • Rewritten content - Payments to First Nations workers

    Brief description

    Employers and payers have a legal obligation to report all income paid to and deductions withheld from First Nations workers (employees or self-employed workers) on a T4 or T4A slip regardless of whether the income is taxable or exempt.

    Content has been updated for clarity, completeness and plain language. No changes were made to the current CRA administrative policy.


    Published on: June 5, 2024

  • Rewritten content - Automobile provided by the employer

    Brief description

    You may provide an automobile for your employee to use in performing their duties of office or employment. Generally, the benefit from personal driving of the employer provided automobile is a taxable benefit.

    Content has been updated for clarity, completeness and plain language. No changes were made to the existing legislative requirement.


    Published on: May 31, 2024

  • Rewritten content - Motor vehicle provided by the employer

    Brief description

    You may provide a motor vehicle to your employee to use in performing their duties of office or employment that is not an automobile. Generally, the benefit from personal driving of the employer provided motor vehicle is a taxable benefit.

    Content has been updated for clarity, completeness and plain language. No changes were made to the existing legislative requirement.


    Published on: May 31, 2024

  • Rewritten content - Automobile or motor vehicle benefits – Allowances or reimbursements provided to an employee for the use of their own vehicle

    Brief description

    You may provide an allowance or a reimbursement to your employee to compensate for the use of their automobile or motor vehicle in connection with or in the course of their office or employment duties.

    Content has been updated for clarity, completeness and plain language. No changes were made to the existing legislative requirement.


    Published on: May 31, 2024

  • Reporting fees for service consultations

    • Reason for consultation: The CRA is looking to better understand businesses’ and organizations’ awareness of, and readiness to comply with, the reporting fees for service (RFS) requirement.
    • Event date: May 22, 2024 to July 22, 2024 Questionnaire closed
    • Refer to: Share your thoughts: Reporting fees for service

    Brief description

    The CRA is seeking feedback through an online questionnaire, which is open to all businesses and organizations who hire another business or businesses to receive a service in exchange for payment.

    The CRA encourages you to participate in this questionnaire, the feedback received will help the CRA to learn more about:

    • Appropriate methods and challenges with RFS reporting
    • Invoicing practices for goods and services
    • How to minimize the administrative burden
    • How prepared businesses and organizations are to meet this reporting requirement
    • How to minimize challenges and provide proactive support for businesses and organizations who need to meet this requirement

    The questionnaire will close on July 22, 2024.


    Published on: May 23, 2024

  • Rewritten content - Travel expenses

    • Reason for change: Clarity, completeness and plain language
    • Effective date: Not applicable
    • Refer to: Travel expenses

    Brief description

    Generally, if an employer provides an allowance or a reimbursement to their employee to compensate for travel expenses (other than automobile or motor vehicle expenses), the benefit is taxable. Depending on the situation, the benefit may not be taxable.

    Content has been updated for clarity, completeness and plain language. No changes were made to the current CRA administrative policy.


    Published on: May 7, 2024

  • Codes added to the T4 slip - Indian (exempt employment income) - RPP contributions and union dues

    Brief description

    The following new codes were added:

    • RPP contributions

      Code 94 – Indian (exempt employment income) - RPP contributions

    • Union dues

      Code 95 – Indian (exempt employment income) - Union dues

    These new codes must be used for T4 slips filed for calendar year 2024 and after to report RPP contributions or union dues relating to tax-exempt employment income you paid to your employee who is registered, or entitled to be registered under the Indian Act.


    Published on: May 1, 2024

  • Updated content – How to calculate deductions

    • Reason for change: Legislation
    • Effective date: Deductions made on or after January 1, 2024
    • Refer to: How to calculate

    Brief description

    The content has been updated to include the payroll deductions tables that are effective January 1, 2024.

    It also includes examples on how to manually calculate CPP contributions, CPP2 contributions, EI premiums and income tax deductions using the 2024 rates and maximum pensionable and insurable earnings.


    Published on: January 29, 2024

  • Rewritten content – Uniforms, protective clothing, safety and special clothing

    Brief description

    Generally, if an employer provides a benefit such as special clothing, an allowance or a reimbursement for special clothing to their employee, the benefit is taxable. Depending on the situation, the benefit may not be taxable under the CRA's administrative policy.

    Content has been updated for clarity, completeness and plain language. No changes were made to the current CRA administrative policy.


    Published on: January 22, 2024

  • Updated content – Payer or employer offered dental benefits

    Brief description

    The following boxes were updated to provide clarity and completness:

    • T4 slip

      Box 45 – Employer-offered dental benefits

    • T4A slip

      Box 015 – Payer-offered dental benefits

    These new boxes must be used to indicate whether the employee/recipient or any of their family members were eligible, on December 31 of that year, to access any dental care insurance, or coverage of dental services of any kind, that an employer or payer offered.


    Published on: January 3, 2024

  • Rewritten content – Event tickets – Determine if a benefit is taxable

    • Reason for change: Clarity, completeness and plain language
    • Effective date: Not applicable
    • Refer to: Event tickets

    Brief description

    Generally, event tickets an employer provides, pay or reimburse to employees are taxable. Depending on the situation, the benefit may not be taxable.


    Published on: December 5, 2023

  • Rewritten content – How to calculate deductions, including CPP2

    • Reason for change: Legislation, clarity, completeness and plain language
    • Effective date: Not applicable
    • Refer to: How to calculate

    Brief description

    Determine which methods you can use to calculate deductions, get the CPP contributions tables, the CPP2 contributions tables, the EI premiums tables, the claim codes and the income tax tables and how to manually calculate the amount to withhold


    Published on: November 21, 2023

  • 2024 Guide T4127 – Payroll Deductions Formulas – 119th Edition

    Brief description

    If you are a payroll software provider or a company which develops its own in-house payroll solution, you can now consult the T4127 119th Edition effective January 1st, 2024.

    This guide has the formulas you need to determine federal, provincial (except Quebec), and territorial income taxes, Canada Pension Plan (CPP) contributions, and employment insurance (EI) premium deductions.


    Published on: November 21, 2023

  • 2024 rates and maximums for CPP, CPP2 and EI

    Brief description

    The CRA and Employment and Social Development Canada announced the new rates for 2024.

    Learn more:


    Published on: November 10, 2023

  • Free webinar – Personal services business (PSB)

    Brief description

    Personal Services Businesses – Event hosted by the CRA

    The CRA is hosting a free webinar to help incorporated individuals determine whether they meet the definition of a personal services business, and what that means in terms of tax obligations.

    This webinar is for you if you are:

    • Registered as a corporation and you're the only shareholder and employee of your corporation
    • Doing work for one other corporation that would normally be done by an employee
    • A worker who is considering incorporating for work

    Registration closed The webinar is on Wednesday, October 25, 2023, at the following times:

    Personal services business (PSB) - Time of webinar for different time zones in Canada
    Session Newfoundland Atlantic Eastern Central Mountain Pacific
    English
    Register now    		 2:30 p.m. 2 p.m. 1 p.m. 12 p.m. 11 a.m. 10 a.m.
    French
    Register now    		 11:30 a.m. 11 a.m. 10 a.m. 9 a.m. 8 a.m. 7 a.m.


    Published on: October 13, 2023

  • Boxes added to the T4 and T4A slips – Payer or employer offered dental benefits

    Brief description

    The following new boxes were added:

    • T4 slip

      Box 45 – Employer-offered dental benefits

    • T4A slip

      Box 015 – Payer-offered dental benefits

    These new boxes must be used to indicate whether the employee/recipient or any of their family members were eligible, on December 31 of that year, to access any dental care insurance, or coverage of dental services of any kind, that an employer or payer offered.


    Published on: October 13, 2023

  • Boxes added to the T4 slip and T4 Summary – CPP2 and QPP2 contributions

    Brief description

    The following new boxes were added:

    • T4 slip

      • Box 16A – Employee's second CPP contributions (CPP2)
      • Box 17A – Employee’s second QPP contributions (QPP2)

    • T4 Summary

      • Box 16A – Employee's second CPP contributions (CPP2)
      • Box 27A – Employer’s second CPP contributions (CPP2)

    These new boxes must be used to report the amount of CPP2 or QPP2 contributions.


    Published on: October 13, 2023

  • CRA administrative policy introduced – Interest benefit may not be taxable for certain low-interest or interest-free loans received because of employment

    • Reason for change: New CRA administrative policy
    • Effective date: Benefits provided on or after January 1, 2023
    • Refer to: Loans and employee debt

    Brief description

    Where a loan is received because of employment, the benefit will not need to be reported when:

    • Total amount of all loans received is $10,000 or less per calendar year
    • Term of the loan(s) is 60 days or less
    • loan is not received because of shareholdings


    Published on: September 25, 2023

  • CRA administrative policy introduced for full-time remote workers – Province of employment (POE)

    Brief description

    Previously, the POE for full-time remote workers was determined by the location of the establishment of the employer that pays their remuneration.

    Under the new policy, the POE for a full-time remote worker is determined by the location of the establishment of the employer to which they can reasonably be considered to be attached.

    Indicators have been developed to assist employers in the determination of whether a worker is considered attached to an establishment.


    Published on: September 15, 2023

  • Rewritten content – Get ready to make deductions, including CPP2

    • Reason for change: Legislation, clarity, completeness and plain language
    • Effective date: For CPP2 deductions made after anuary 1, 2024
    • Refer to: Get ready to make deductions

    Brief description

    Learn about Canada Pension Plan (including second additional CPP contributions), Employment Insurance and the income tax deductions, including the CPP, CPP2, EI and income tax rates, the CPP/EI maximums and the CPP exemptions.


    Published on: September 5, 2023

  • Distribution requirement changes – Consent may not be required when distributing slips by email or using a secure electronic portal

    • Reason for change: Legislation
    • Effective date: Effective retroactively
    • Refer to: Distribute the slips

    Brief description

    Employers and payers can distribute T4, T4A, T5, T2202 or T4FHSA slips using an employer or payer's secure electronic portal without obtaining written or electronic consent from the employees or recipients before distributing the slips unless an exceptional situation applies, or the taxpayer has requested the information return be provided in paper format.


    Published on: September 5, 2023

  • Electronic filing requirement changes – Information returns may need to be filed electronically if more than 5 slips

    Brief description

    The threshold for mandatory electronic filing of income tax information returns for a calendar year has been lowered from 50 to 5 for information returns filed after December 31, 2023.


    Published on: August 12, 2023

  • Rewritten content – Payment of fees for services

    Brief description

    Payers are required to report fees for services on a T4A, T5018 or T1204 slip, depending on who the payment was made to.

    Content was rewritten and improved to provide guidance on indicators when a payment is made for a good or a service.


    Published on: August 3, 2022

  • Electronic remitting requirement changes – Employers and payers should need to pay electronically if paying (remitting) more than $10,000

    • Reason for change: Legislation
    • Effective date: Payments made on or after January 1, 2024
    • Refer to: How to remit (pay)

    Brief description

    As of January 1, 2024, remittances or payments to the Receiver General of Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically.


    Published on: July 17, 2023

  • CRA administrative policy updated – Long-service awards part of the gift card policy

    Brief description

    Change allows certain gift cards to be used for providing long-service awards. Criteria for the gift cards able to be used for long-service awards is the same as for gift cards used in providing non-cash gifts and awards.


    Published on: February 28, 2023

  • CRA administrative policy introduced and updated – New ratio to simplify when parking benefit is taxable

    • Reason for change: Update and new CRA administrative policy
    • Effective date: Benefits provided on or after January 1, 2022
    • Refer to: Parking

    Brief description

    A new ratio has been provided to help simplify when a taxable parking benefit must be included in income in cases where a limited number of parking spaces are provided to employees by the employer.


    Published on: October 13, 2022

  • CRA administrative policy introduced and updated – Benefit may not be taxable for certain social events

    Brief description

    A new category has been created for virtual social events. Virtual social events can be provided by an employer for its employees and not be considered to be a taxable benefit as long as the cost per employee is $50 or less when only hospitality is provided, or $100 or less where both hospitality and entertainment are provided. Where the event is both in-person and virtual, for administrative convenience, the current cost limit per person of $150 will apply.


    Published on: October 13, 2022

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Date modified:
2024-11-29