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Payroll Source Deductions - January 2012
Federal Tax Changes
- Indexing
The income tax thresholds and many of the personal amounts on the federal Form TD1, Personal Tax Credits Return, are indexed for 2012 based on changes to the Consumer Price Index (CPI) factor.
- Federal tax rates and income thresholds
Effective January 1, 2012, the federal tax rates and income thresholds are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 42,707 |
15.00% |
| $ 42,707 |
$ 85,414 |
22.00% |
| $ 85,414 |
$ 132,406 |
26.00% |
| $ 132,406 |
- |
29.00% |
- Federal personal amounts
Refer to the TD1 form for complete information on personal amounts for 2012.
Effective January 1, 2012, federal personal amounts are as follows:
| $ 10,822 |
Basic personal amount |
| $ 10,822 |
Spouse or common-law partner amount |
| $ 2,191 |
Child amount |
| $ 10,822 |
Amount for an eligible dependant |
| $ 7,546 |
Disability amount |
| $ 4,402 |
Amount for an infirm dependent, age 18 and over |
| $ 4,402 |
Caregiver amount |
| $ 6,537 |
Age amount (for age 65 and over) |
| $ 2,000 |
Pension income amount |
| $ 465 |
Education amount for each month full-time |
| $ 140 |
Education amount for each month part-time |
- Canada Pension Plan (CPP)
For 2012, the Canada Pension Plan maximum pensionable earnings are $50,100, and the basic exemption for the year is $3,500. The contribution rate for employees is 4.95%. An employee’s maximum contribution for the year is $2,306.70.
The employer’s contribution is an amount equal to the total of the employee’s contribution.
- Employment Insurance (EI)
For 2012, the maximum annual insurable earnings are $45,900 and the premium rate is 1.83% for a maximum annual premium of $839.97 for the country except for Quebec and 1.47% for a maximum annual premium of $674.73 for Quebec. For 2012, the maximum earnings for the Quebec Parental Insurance Plan (QPIP) are $66,000 with a rate of 0.559% for a maximum annual premium of $368.94.
The employer’s contribution is 1.4 times the amount of the employee’s premiums, unless a reduced rate applies.
Provincial and Territorial Tax Changes
- Alberta
Refer to the TD1AB form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 10.00%.
Listed below are some of the non-refundable personal tax credits amounts for Alberta.
| $ 17,282 |
Basic personal amount |
| $ 17,282 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rate is 10.00%.
- British Columbia
Refer to the TD1BC form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 5.06%.
Listed below are some of the non-refundable personal tax credits amounts for British Columbia
| $ 11,354 |
Basic personal amount |
| $ 9,964 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for British Columbia are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 37,013 |
5.06% |
| $ 37,013 |
$ 74,028 |
7.70% |
| $ 74,028 |
$ 84,993 |
10.50% |
| $ 84,993 |
$ 103,205 |
12.29% |
| $ 103,205 |
- |
14.70% |
- Manitoba
Refer to the TD1MB form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 10.80%.
Listed below are some of the non-refundable personal tax credits amounts for Manitoba
| $ 8,634 |
Basic personal amount |
| $ 8,634 |
Spouse or common-law partner amount |
Effective January 1, 2012, the income thresholds and provincial tax rates for Manitoba are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 31,000 |
10.80% |
| $ 31,000 |
$ 67,000 |
12.75% |
| $ 67,000 |
- |
17.40% |
- New Brunswick
Refer to the TD1NB form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 9.10%.
Listed below are some of the non-refundable personal tax credits amounts for New Brunswick.
| $ 9,203 |
Basic personal amount |
| $ 7,815 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for New Brunswick are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 38,190 |
9.10% |
| $ 38,190 |
$ 76,380 |
12.10% |
| $ 76,380 |
$ 124,178 |
12.40% |
| $ 124,178 |
- |
12.70% |
- Newfoundland and Labrador
Refer to the TD1NF form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 7.70%.
Listed below are some of the non-refundable personal tax credits amounts for Newfoundland and Labrador
| $ 8,237 |
Basic personal amount |
| $ 6,731 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Newfoundland and Labrador are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 32,893 |
7.70% |
| $ 32,893 |
$ 65,785 |
12.50% |
| $ 65,785 |
- |
13.30% |
- Nova Scotia
Refer to the TD1NS form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 8.79%.
Listed below are some of the non-refundable personal tax credits amounts for Nova Scotia.
| $ 8,481 |
Basic personal amount |
| $ 7,201 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Nova Scotia are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 29,590 |
8.79% |
| $ 29,590 |
$ 59,180 |
14.95% |
| $ 59,180 |
$ 93,000 |
16.67% |
| $ 93,000 |
$ 150,000 |
17.50% |
| $ 150,000 |
- |
21.00% |
- Northwest Territories
Refer to the TD1NT form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 5.90%.
Listed below are some of the non-refundable personal tax credits amounts for the Northwest Territories.
| $ 13,280 |
Basic personal amount |
| $ 13,280 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Northwest Territories are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 38,679 |
5.90% |
| $ 38,679 |
$ 77,360 |
8.60% |
| $ 77,360 |
$ 125,771 |
12.20% |
| $ 125,771 |
- |
14.05% |
- Nunavut
Refer to the TD1NU form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 4.00%.
Listed below are some of the non-refundable personal tax credits amounts for Nunavut.
| $ 12,211 |
Basic personal amount |
| $ 12,211 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Nunavut are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 40,721 |
4.00% |
| $ 40,721 |
$ 81,442 |
7.00% |
| $ 81,442 |
$ 132,406 |
9.00% |
| $ 132,406 |
- |
11.50% |
- Ontario
Refer to the TD1ON form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 5.05%.
Listed below are some of the non-refundable personal tax credits amounts for Ontario.
| $ 9,405 |
Basic personal amount |
| $ 7,986 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Ontario are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 39,020 |
5.05% |
| $ 39,020 |
$ 78,043 |
9.15% |
| $ 78,043 |
- |
11.16% |
- Prince Edward Island
Refer to the TD1PE form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 9.80%.
Listed below are some of the non-refundable personal tax credits amounts for Prince Edward Island.
| $ 7,708 |
Basic personal amount |
| $ 6,546 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Prince Edward Island are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 31,984 |
9.80% |
| $ 31,984 |
$ 63,969 |
13.80% |
| $ 63,969 |
- |
16.70% |
- Québec
Refer to the TP-1015.3-V form for complete information on personal amounts.
The federal Québec tax abatement rate for 2012 is 16.50%.
The income thresholds and personal amounts have been indexed.
Listed below are some of the non-refundable personal tax credits amounts for Québec.
| $ 10,925 |
Basic personal amount |
| $ 10,925 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Québec are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 40,100 |
16.00% |
| $ 40,100 |
$ 80,200 |
20.00% |
| $ 80,200 |
- |
24.00% |
Québec Pension Plan (QPP)
For 2012, the maximum pensionable earnings for the purposes of the QPP is $50,100. The contribution rate for employees is 5.025%. An employee’s maximum contribution for the year is $2,341.65.
Québec Parental Insurance Plan (QPIP)
The maximum insurable earnings subject to QPIP premiums for 2012 is $ 66,000. The employee premium rate is 0.559%, and the employer premium rate is 0.782%. An employee’s maximum contribution for the year is $ 368.94.
Québec Employment Insurance (QEI)
For 2012, the maximum annual insurable earnings are $45,900 and the premium rate is 1.47% for a maximum annual premium of
$ 674.73.
- Saskatchewan
Refer to the TD1SK form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 11.00%.
Listed below are some of the non-refundable personal tax credits amounts for Saskatchewan.
| $ 14,942 |
Basic personal amount |
| $ 14,942 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Saskatchewan are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 42,065 |
11.00% |
| $ 42,065 |
$ 120,185 |
13.00% |
| $ 120,185 |
- |
15.00% |
- Yukon
Refer to the TD1YT form for complete information on personal amounts.
The income thresholds and personal amounts have been indexed. Personal amounts will be multiplied by the lowest tax rate of 7.04%.
Listed below are some of the non-refundable personal tax credits amounts for Yukon.
| $ 10,822 |
Basic personal amount |
| $ 10,822 |
Spouse or common-law partner amount |
Effective January 1, 2012, the tax rates and income thresholds for Yukon are as follows:
| more than |
not more than |
Rate |
| $ 0.00 |
$ 42,707 |
7.04% |
| $ 42,707 |
$ 85,414 |
9.68% |
| $ 85,414 |
$ 132,406 |
11.44% |
| $ 132,406 |
- |
12.76% |
- Federal surtax for income not earned in a province or territory.
The federal surtax rate for income, which is considered to be earned in Canada but not considered to be earned in a province or territory, is still 48.00%.
This federal surtax applies to deemed residents of Canada such as members of the Canadian Armed Forces who reside outside Canada, Canadian residents with income from a permanent establishment in a foreign country, and non-residents who have employment income taxable in Canada.
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tc@canadianpayroll.com