T4008-NB-7 - Payroll Deductions Supplementary Tables - New Brunswick - Effective July 1, 2016
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Payroll Deductions Supplementary Tables - New Brunswick
T4008-NB-7 (E) Rev. 16
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 Guide T4032, Payroll Deductions Tables.
Table of contents
Section A
- What's new as of July 1, 2016
- 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 July 1, 2016
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 as proposed, would be effective July 1, 2016. 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 starting with the first payroll in July 2016.
The New Brunswick budget delivered on February 2, 2016, announced changes to the tax brackets and rates. For 2016 and subsequent tax years, the top personal income tax rate of 25.75% is eliminated and the tax rate for taxable income over $150,000 is changed from 21% to 20.3%
Since some employees have been taxed at a different rate for the first six months, prorated tax rates will apply for the remaining six months, commencing with the first payroll in July.
The changes to the New Brunswick income tax rates and thresholds for July 1, 2016 are:
- change the tax rate of 21.00% to 19.60% for the income threshold of $150,000.01 to $250,000.00;
- change the tax rate of 25.75% to 14.85% for the income threshold of $250,000.01 and over.
Payroll Deductions Tables
You can download Guides T4008, Payroll Deductions Supplementary Tables, and T4032, Payroll Deductions Tables, from our webpage at www.cra.gc.ca/payroll. You can also choose to print only the pages or information that you need.
Guide T4032, Payroll Deductions Tables, is also available on CD for use on any computer with or without Internet access. You can order a copy at www.cra.gc.ca/orderforms or by calling 1-800-959-5525.
Paper copies remain available for employers who do not use a computer. To get a copy, call us at 1-800-959-5525.
Payroll Deductions Online Calculator
For your 2016 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 www.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 webpage at www.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)
Effective with the January 1, 2017 edition, the Canada Revenue Agency will no longer publish the paper and CD versions of the Guide T4032, Payroll Deductions Tables.
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, 2016;
- 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
www.cra.gc.ca/payroll Payroll Deductions Online Calculator
Note
You may also want to keep the 2015 edition of thisguide until the end of 2016. These tables may help you resolve any pensionable and insurable earnings review (PIER) deficiencies that may arise after we have processed your 2015 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. 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 Chart 1 and Chart 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 that they have more than one employer or payer at the same time and have entered “0” on the front page of Form TD1 for 2016.
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 changed 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 2016, 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 |
| 11,474.00 | 1 |
| 11,474.01 to 13,666.00 | 2 |
| 13,666.01 to 15,858.00 | 3 |
| 15,858.01 to 18,050.00 | 4 |
| 18,050.01 to 20,242.00 | 5 |
| 20,242.01 to 22,434.00 | 6 |
| 22,434.01 to 24,626.00 | 7 |
| 24,626.01 to 26,818.00 | 8 |
| 26,818.01 to 28,010.00 | 9 |
| 28,010.01 to 31,202.00 | 10 |
| 31,202.01 and over | X The employer has to calculate the tax manually. |
| No withholding | E |
| Total claim amount ($) | Claim code |
|---|---|
| No claim amount | 0 |
| 9,758.00 | 1 |
| 9,758.01 to 11,923.00 | 2 |
| 11,923.01 to 14,088.00 | 3 |
| 14,088.01 to 16,253.00 | 4 |
| 16,253.01 to 18,418.00 | 5 |
| 18,418.01 to 20,583.00 | 6 |
| 20,583.01 to 22,748.00 | 7 |
| 22,748.01 to 24,913.00 | 8 |
| 24,913.01 to 27,078.00 | 9 |
| 27,078.01 to 29,243.00 | 10 |
| 29,243.01 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:
- 2016-06-09