T4008-BC - Payroll Deductions Supplementary Tables - British Columbia - Effective January 1, 2017
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Payroll Deductions Supplementary Tables - British Columbia
T4008-BC (E) Rev. 17
This guide uses plain language to explain the most common tax situations. If you need more help, contact your tax services office.
Note
You must look up amount in two tax deductions tables – a federal table and a provincial table.
This guide is a supplement to the publication T4032, Payroll Deductions Tables.
Table of contents
Section A
- What's new as of January 1, 2017
- Payroll Deductions Tables
- Payroll Deductions Online Calculator
- Let us notify you
- General information
- Claim codes
- Explanation of claim codes
- Employment income from all sources
What's new as of January 1, 2017
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 by the applicable legislature as proposed, would be effective January 1, 2017. 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 commencing with the first payroll in January 2017.
There is no change to the federal income tax rates for January 2017.
The federal Canada employment credit has been indexed to $1,178 for 2017.
The federal basic personal amount, the spouse or common-law partner amount and the amount for an eligible dependant have been indexed to $11,635 for 2017.
The British Columbia income thresholds and personal amounts have been indexed for 2017.
Payroll Deductions Tables
You can download Guides T4008, Payroll Deductions Supplementary Tables, and T4032, Payroll Deductions Tables, from our webpage at cra.gc.ca/payroll. You can also choose to print only the pages or information that you need.
Payroll Deductions Online Calculator
For your 2017 payroll deductions, you can use our Payroll Deductions Online Calculator (PDOC). This online calculator makes it easier to calculate payroll deductions. PDOC is available at cra.gc.ca/pdoc.
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 website at cra.gc.ca/lists and enter your business's email address for each mailing list that you want to join.
Special Notice
Payroll Deductions Tables (T4032)
This January 1, 2017, the Canada Revenue Agency will no longer publish the paper and CD versions of the Guide T4032, Payroll Deduction Tables. The electronic version of the guide will continue to be available at: cra.gc.ca/payroll.
General information
This guide is a supplement to the Guide T4032, Payroll Deductions Tables. See the Payroll Deductions Tables for your province or territory if you need more information about:
- what's new for January 1, 2017;
- how to calculate tax deductions when you cannot use the tables;
- how to deduct income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums; and
- the payroll deductions required for pay periods other than those included in this guide.
For 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
You can download and print a copy of the above noted guides. Our guides are available from our website at cra.gc.ca/payroll. You can also use the Payroll Deductions Online Calculator free of charge.
Note
You may also want to refer to the 2016 edition of thisguide until the end of 2017 to resolve any pensionable and insurable earnings review (PIER) deficiencies that may arise after we have processed your 2016 T4 return.
Claim codes
You may have to ask your employees or your pensioners to complete a federal and a provincial personal tax credits return using a federal Form TD1 and a provincial Form TD1.
The total personal amount an employee claims on a TD1 form will determine which claim code you use. For 2017, the claim amounts that correspond to the federal claim codes are not the same as the claim amounts that correspond to the provincial claim codes. Go to charts 1 and 2.
The claim codes and corresponding amounts do not appear on either the federal or the provincial TD1 form.
Explanation of claim codes
Claim code 0
This code represents no claim amount. If the federal claim code is “0” because the employee is a non-resident, the provincial claim code must also be “0.” This code may also be used if the employee indicated they have more than one employer or payer at the same time and have entered “0” on the front page of Form TD1 for 2017.
Claim codes 1 to 10
You match the total claim amount reported on your employee’s or pensioner’s TD1 forms with the appropriate claim codes. Then, you look up the tax for the employee’s pay under the claim code in the federal and provincial tax tables for the pay period.
Indexing of claim codes amounts
The credits that apply to each federal and provincial claim code have been automatically increased in the tax tables by the indexing factor for the current year. If your employee did not complete the federal and provincial TD1 forms for 2017, you continue to deduct income tax using the same claim code that you used last year.
| Total claim amount ($) | Claim code |
|---|---|
| No claim amount | 0 |
| 11,635.00 | 1 |
| 11,635.01 to 13,858.00 | 2 |
| 13,858.01 to 16,081.00 | 3 |
| 16,081.01 to 18,304.00 | 4 |
| 18,304.01 to 20,527.00 | 5 |
| 20,527.01 to 22,750.00 | 6 |
| 22,750.01 to 24,973.00 | 7 |
| 24,973.01 to 27,196.00 | 8 |
| 27,196.01 to 29,419.00 | 9 |
| 29,419.01 to 31,642.00 | 10 |
| 31,642.01 and over | X The employer has to calculate the tax manually |
| No withholding | E |
| Total claim amount ($) | Claim code |
|---|---|
| No claim amount | 0 |
| 10,208.00 | 1 |
| 10,208.01 to 12,505.00 | 2 |
| 12,505.01 to 14,802.00 | 3 |
| 14,802.01 to 17,099.00 | 4 |
| 17,099.01 to 19,396.00 | 5 |
| 19,396.01 to 21,693.00 | 6 |
| 21,693.01 to 23,990.00 | 7 |
| 23,990.01 to 26,287.00 | 8 |
| 26,287.01 to 28,584.00 | 9 |
| 28,584.01 to 30,881.00 | 10 |
| 30,881.01 and over | X The employer has to calculate the tax manually |
| No withholding | E |
Employment income from all sources
On the federal and provincial TD1 forms, under the heading "Income from other employers or payers," employees can indicate that their expected employment income from all sources will be less than their total claim amount. If an employee states that his or her total expected income will be less than the "Total claim amount" of the TD1 forms, do not deduct any federal or provincial tax.
However, as an employer, if you know that this statement is false, you must deduct federal and provincial tax from the salary. Deduct tax according to the claim code that applies to the "Total claim amount" of the TD1 forms.
It is a serious offence to knowingly accept a Form TD1 that contains false or deceptive statements. If you are not sure a statement is true, contact your tax services office for advice.
- Date modified:
- 2016-12-16