03BookletFrontOnly ORG.t4127 15e

T4127(E) Rev.
15
100th Edition
Effective January 1, 2015
Payroll Deductions
Formulas for
Computer Programs
0.13
0.0968
0.11
0.0704
SK
YT
YT
138,586
150,000
138,586
93,000
131,641
129,975
86,958
138,586
4th
11,327
15,639
7,708
9,863
12,781
8,481
13,900
8,767
9,633
5th
0.05
0.1
0.2 &
0.36
V1
rate
The Outside Canada surtax rate is 48%.
6,000
12,500
4,418 &
5,654
V1
amount
The Quebec abatement is 16.5%.
220,000
150,000
151,050
6th
The Outside Canada surtax rate is 48%.
The Quebec abatement is 16.5%.
0.1316
105,592
0.1276
0.1216
0.115
0.175
0.1405
0.1784
0.25
0.20
0.20
0.20
0.20
0.15
0.15
0.10
LCP
rate
1.7%
1.7%
2.0%
1.7%
1.7%
2.2%
1.7%
0.7%
2.4%
1.7%
Index
rate
34
www.cra.gc.ca
* Note: Quebec calculates its own amounts, so we do not include figures for that province here.
Outside
Canada
*QC
89,401
SK
44,701
PE
63,969
81,847
40,922
ON
125,795
85,243
42,622
NU
44,028
59,180
29,590
NS
31,984
80,971
40,484
NT
70,015
NL
79,946
NB
35,008
MB
39,973
BC
75,740
89,401
44,701
67,000
3rd
2nd
31,000
1st
37,869
AB
Federal
Outside
Canada
0.1144
0.15
0.167
0.1116
0.09
0.1667
0.122
0.133
0.1652
Tax bracket income thresholds
0.138
0.098
PE
*QC
0.07
0.0915
0.04
0.0505
0.1495
0.0879
NS
ON
0.086
0.059
NT
NU
0.125
0.077
0.21
0.1482
0.0968
9,134
NL
0.168
NB
0.147
9,938
0.174
0.1229
0.108
0.105
0.077
0.1275
0.0506
11,327
MB
6th
BC
5th
18,214
0.29
4th
0.10
0.26
3rd
AB
0.22
2nd
0.15
Basic
amount
Federal
1st
Tax bracket rates
You can use this sheet as a quick summary for inputting the new figures into your programs.
Summary sheet for January 2015
Chapter 9 Summary sheets
1,250
1,000
2,000
2,000
2,000
1,800
2,000
500
LCP
amount
1,146
1,146
CEC
228
412
28
28
28
29
29
Chapter 6 Option 2 Tax formula based on cumulative averaging .............................................................................

Calculation of income ..........................................................................................................................................................
Calculation of tax for the pay period .................................................................................................................................
Special situations ..................................................................................................................................................................
Formula to calculate annual taxable income (A) ..............................................................................................................
www.cra.gc.ca
16
17
17
19
19
20
21
21
21
22
22
23
23
23
24
24
26
26
26
27
28
Chapter 5 Option 1 Tax formula ......................................................................................................................................

Formula to calculate annual taxable income (A) ...................................................................................................................
Formula to calculate basic federal tax (T3) .............................................................................................................................
Formula to calculate the annual federal tax payable (T1) ....................................................................................................
Tax calculation formula for bonuses, retroactive pay increases, and other non-periodic payments ............................
Formula to calculate annual basic provincial or territorial tax (T4)....................................................................................
Formulas to calculate the annual provincial or territorial tax deduction (T2) ..................................................................
Alberta: ...................................................................................................................................................................................
British Columbia: ..................................................................................................................................................................
Manitoba: ...............................................................................................................................................................................
New Brunswick:....................................................................................................................................................................
Newfoundland and Labrador: ............................................................................................................................................
Northwest Territories: ..........................................................................................................................................................
Nova Scotia: ...........................................................................................................................................................................
Nunavut: ................................................................................................................................................................................
Ontario: ..................................................................................................................................................................................
Prince Edward Island: ..........................................................................................................................................................
Quebec: ...................................................................................................................................................................................
Saskatchewan: .......................................................................................................................................................................
Yukon: ....................................................................................................................................................................................
Formula to calculate the estimated federal and provincial or territorial tax deductions (T) for the pay period .........
14
9
9
Chapter 3 Claim codes ..........................................................................................................................................................

Federal, provincial, and territorial claim codes .....................................................................................................................
Chapter 4 Glossary ................................................................................................................................................................
9
9
9
8
8
8
Chapter 1 General information ...........................................................................................................................................

Rounding procedures ...............................................................................................................................................................
Tax deductions comparison .....................................................................................................................................................
Chapter 2 Personal tax credits returns (TD1 forms) ........................................................................................................
Federal Form TD1, 2015 Personal Tax Credits Return.............................................................................................................
Indexing of personal amounts .................................................................................................................................................
5
5
5
6
6
6
6
6
6
7
7
7
7
7
7
8
Page
Whats new for January 1, 2015? ............................................................................................................................................
Federal changes .........................................................................................................................................................................
Indexing .................................................................................................................................................................................
Canada Pension Plan (CPP) .....................................................................................................................................................
Quebec Pension Plan (QPP) .....................................................................................................................................................
Employment insurance (EI) .....................................................................................................................................................
Provincial and territorial tax changes .....................................................................................................................................
Alberta ....................................................................................................................................................................................
British Columbia ...................................................................................................................................................................
New Brunswick.....................................................................................................................................................................
Newfoundland and Labrador .............................................................................................................................................
Northwest Territories ...........................................................................................................................................................
Nunavut .................................................................................................................................................................................
Ontario ...................................................................................................................................................................................
Saskatchewan ........................................................................................................................................................................
Yukon .....................................................................................................................................................................................
Table of contents
[S1 (I F F2 U1)] + B1 + B HD F1
*
**
Use $2,630.25 for employees employed in Quebec.

Use 0.0525 for employees employed in Quebec.
The lesser of:

(i) $2,479.95* D; and
(ii) 0.0495** [PI ($3,500/P)]
If the result is negative, C = $0.
*
**
Use $2,630.25 for employees employed in Quebec.

Use 0.0525 for employees employed in Quebec.
The lesser of:

(i) $2,479.95* D; and
(ii) 0.0495** [G ($3,500 N/365, minimum $67.30)]
If the result is negative, C = $0.
Note
For both formulas, round the resulting amount to the nearest $0.01. The maximum amount for the year [amount (i)
above] will vary according to the rules in the section called Special CPP Situations.
32
www.cra.gc.ca
Your employee turns 70 Deduct CPP contributions up to and including the last pay dated in the month in which the
employee turns 70.
Your employee turns 18 Start deducting CPP contributions for the first pay dated in the month after the employee
turns 18.
You will have to either start or stop deducting CPP contributions under the following circumstances:
Special CPP situations
Also, you should determine the number of pay periods at the start of the year (for example, for weekly, you can have
52 or 53 pay periods and, for biweekly, you can have 26 or 27 pay periods.) This is to make sure that you have
deducted employee contributions properly.
The basic exemption amount ($3,500/P) used to determine the employees contributions for the pay period has to stay
the same throughout the year, regardless of whether an employee has worked in each week of the pay period.
For payments where the employee receives remuneration such as a bonus, retroactive pay increase, vacation pay
when vacation is not taken, or accumulated overtime pay, and the payment is not included with the regular
remuneration for the current pay period, you should introduce a code or use the factor B with the record. Also do this
if a non-periodic payment is made and no regular remuneration is paid in the pay period. You do this to avoid
allowing the basic exemption for the pay period ($3,500/P) in the formula described above.
Each employer needs to deduct CPP contributions based on the employees pensionable income, without regard to
any other earnings the employee may have had with another employer in the same year. Accordingly, you must use
the maximum above even if the employee works for you less than 12 months. Similarly, you are not entitled to a
refund of the employers share of CPP if the employee works for you less than 12 months.
Formula to determine CPP contributionsonly for employees paid by

commission
Formula to determine CPP contributions for employees receiving salary or

wages
Chapter 7 Canada Pension Plan (CPP)
Step 2
Projected annual taxable income including B1, but not B payable now
= [S1 (I F F2 U1)] + B1 HD F1
465
11,327
4,608
6,700
Spouse or common-law partner amount............................................................................................................

Amount for an eligible dependant ......................................................................................................................
Caregiver amount ..................................................................................................................................................
Amount for an infirm dependant age 18 or older .............................................................................................
Taxation Year
LCF
2015
10%
www.cra.gc.ca
2016
5%
After 2016
0%
Federal labour-sponsored funds tax credit

The federal labour-sponsored funds tax credit (LCF) will be phased out starting in 2015 according to the following
schedule:
Note
For the Canada employment credit, A is the annual gross income from office or employment before deductions.
This is the same amount you usually report in box 14 of a T4 slip. As administrative relief, you can use the regular
factor A (annual taxable income) for this calculation, except when the total income is superannuation or pension
benefits.
(ii) 0.15 $1,146.
(i) 0.15 A; and
Canada employment credit

The Canada employment credit (factor K4) is the lesser of:
For complete information on all personal amounts for 2015, see the 2015 federal Form TD1, Personal Tax Credits
Return.
7,899
11,327
Disability amount ..................................................................................................................................................
140
Education and textbook amount for each month (full-time) ...........................................................................

Education and textbook amount for each month (part-time) .........................................................................
7,033
2,000
Pension income amount .......................................................................................................................................
2,093
Caregiver amount for children under age 18 ....................................................................................................

Age amount ............................................................................................................................................................
$11,327
Basic personal amount ..........................................................................................................................................
Federal personal amounts

Some federal personal amounts were increased as a result of federal indexing.
The claim code amounts are also indexed. The revised figures can be found in chapter 3 Claim codes.
Federal income thresholds

The income thresholds and personal amounts are indexed. The current and previous figures can be found in
chapter 9 Summary sheets at the end of the publication.
The income tax thresholds and many of the personal amounts on the federal Form TD1, Personal Tax Credits Return,
are indexed for 2015. Indexing means that the values are adjusted based on changes to the consumer price index. The
federal indexing factor for 2015 is 1.7%.
Indexing
Federal changes
This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective
January 1, 2015. At the time of publishing, these proposed changes were not law. We recommend that you use the
Payroll Deductions Online Calculator (PDOC), Publication T4032, Payroll Deductions Tables, or Publication T4008,
Payroll Deductions Supplementary Tables, and the formulas in this guide for withholding, starting with your first payroll
in 2015.
Whats new for January 1, 2015?
Projected annual taxable income
0.15 TC
[(0.15 (0.0495 ((S1 PI) + B1 $3,500)*, maximum $2,479.95)) +

(0.15 (0.0188 ((S1 IE) + B1), maximum $930.60))]
T3
K1
K2
K4
0.15
0.26
0.29
44,701
89,401
138,586
44,701
89,401
138,586 and over
Note
For the Canada employment credit, A is the annual gross income from office or employment before
deductions. This is the same amount you normally report in box 14 of the T4 slip(s). As administrative
relief, you are authorized to use the regular factor A (annual taxable income) for this calculation, except
when the total income is superannuation or pension benefits.
The lesser of:

(i) 0.15 A; and
(ii) 0.15 $1,146.
The above has to follow the rules in Chapter 7 Canada Pension Plan (CPP) and Chapter 8
Employment Insurance (EI) of this publication and the instructions contained in Guide T4001,
Employers Guide Payroll Deductions and Remittances.
IE = Insurable earnings for the pay period including insurable taxable benefits for the pay period, plus
IEYTD
Where:
PI = Pensionable income for the pay period, or the gross income plus any taxable benefits for the pay
period, plus PIYTD
Note
* If the result is negative, enter $0.
30
www.cra.gc.ca
Annual federal tax deduction except for Quebec, outside Canada, and in Canada beyond the limits of any
province or territory
(T3 LCF)*
Formula to calculate the federal tax payable (T1)
T1
10,863
6,705
3,129
Constant ($)
(K)
Only for employees in Quebec:

K2Q = [(0.15 (0.0525 ((S1 PI) + B1 $3,500)*, maximum $2,630.25)) +
(0.15 (0.0154 ((S1 IE) + B1), maximum $762.30)) +
(0.15 (0.00559 S1 IE) + B1), max $388.51))]
0.22
Rate
(R)
Annual taxable income (A)

More than Not more than ($)
Federal tax rates and income thresholds for 2015

(R A) K K1 K2Q K3 K4
If the result is negative, T3 = $0.
(R A) K K1 K2 K3 K4
T3
Formula to calculate basic federal tax (T3)
$421 for each dependant with a disability that the employee or pensioner has claimed on Form TD1ON.
www.cra.gc.ca
For complete information on personal amounts, see Form TD1SK.
The income thresholds and personal amounts for Saskatchewan are indexed. The indexing factor for 2015 is 1.7%.
Saskatchewan
The reduction is equal to twice the individuals personal amounts minus the Ontario income tax. The reduction
cannot be more than the Ontario income tax otherwise payable. There is no reduction when that tax is more than
twice the personal amounts.
* Since the tax reduction for dependants under age 19 is not shown on Form TD1ON, the employee or pensioner
will have to provide the employer or payer with a written or electronic request to include such amounts.
$421 for each dependant under age 19*; and
$228 for the basic personal amount;
The provincial tax reduction amounts for 2015 are as follows:
Provincial tax reduction

The provincial tax reduction for Ontario has changed as a result of provincial indexing. When possible, you should
implement the Y factor based on the total of the applicable amounts shown on the employees or pensioners
Form TD1ON. If you do not use the Y factor, any over deduction of tax will be adjusted when the individual files an
income tax and benefit return.
If the basic provincial tax payable (T4) is more than $5,654, the surtax payable (V1) is the total of 20% of the basic
provincial tax payable that is over $4,418 and 36% of the basic provincial tax payable that is over $5,654.
If the basic provincial tax payable (T4) is more than $4,418 and less than or equal to $5,654, the surtax payable (V1)
is 20% of the basic provincial tax payable that is over $4,418.
If the basic provincial tax payable (T4) is less than or equal to $4,418, the surtax payable (V1) is $0.
Ontario provincial surtax

The Ontario provincial surtax thresholds for 2015 are as follows:
For complete information on personal amounts, see Form TD1ON.
The income thresholds and personal amounts have been indexed. The provincial indexing factor for 2015 is 2.0%.
Ontario
For complete information on personal amounts, see Form TD1NU.
The income thresholds and personal amounts are indexed. The indexing factor for 2015 is 1.7%.
Nunavut
For complete information on personal amounts, see Form TD1NT.
Northwest Territories
For complete information on personal amounts, see Form TD1NL.
The income thresholds and personal amounts are indexed. The provincial indexing factor for 2015 is 2.2%.
Newfoundland and Labrador
For complete information on personal amounts, see Form TD1NB.
New Brunswick
For employees paid by commission who have filled out Form TD1X:
T = The tax to be deducted on the current commission payment (factor G)
= [(T1 + T2)/(I1/(G F F1))] + L
You can round the resulting amount to the nearest multiple of $0.05 or $0.01.
Note: The F and F1 amounts used here are additional amounts that were not known or considered
when calculating the Annual taxable income (A) variable.
Only for employees in Quebec, outside Canada, and in Canada beyond the limits of any province or
territory:
T = (T1/P) + L
[(T1 + T2)/P] + L
28
www.cra.gc.ca
Continuing the above example, if the total federal and provincial or territorial tax on $25,380.95 is $3,560.17, the
proportional year-to-date tax is $2,875.52 ($3,560.17/26 21.). If the total tax deducted year-to-date is $2,736.40, the
tax on the current income of $500 is $139.12 ($2,875.52 $2,736.40). The tax values used in this example are fictitious.
For Option 2, you calculate the tax on the projected income for the year, and then find the tax amount that is
proportional to the number of pay periods that have occurred (including the current pay period). Compare the result
to the tax deducted in the year-to-date. The difference is the tax payable on the current income.
Calculation of tax for the pay period
To determine year-to-date income, you have to use the year-to-date taxable income. Therefore, you will have to store
and use the year-to-date values for each pay period factor, such as RPP (factor F) and union dues (U1).
In Option 2, the actual year-to-date income plus the current income is projected over the rest of the pay periods in the
year. For example, an employee received a total of $20,000 in 20 previous pay periods and $500 in the current pay
period, and there are 5 pay periods left. The projected income for the year using Option 2 will be $25,380.95
[($20,000 + $500) 26/21].
Calculation of income
The following sections explain in detail how Option 2 works. The initialism YTD used in this option means
year-to-date and applies to payments or deductions for the current year, but not the payment payable now and the
deductions for the current pay period.
Option 2 formulas are intended for employees whose pay varies considerably from one pay period to the next. In the
Option 2 formulas, the amount of tax to be deducted is based on the projected annual taxable income (including
bonuses) compared to the amount of tax already deducted in the year. Option 2 works well for employees who are
employed for a full calendar year. If the employees income is relatively stable for each pay period, there will not
be much difference in the tax deductions with Option 2 compared to Option 1.
Chapter 6 Option 2 Tax formula based on

cumulative averaging
www.cra.gc.ca
The claim amounts that correspond to the federal claim codes are different than the claim amounts that correspond to
the provincial or territorial claim codes. Below is a listing of claim codes and amount ranges.
Federal, provincial, and territorial claim codes
This code represents no claim amount allowed. If the federal claim code is 0 because the employee is a non-resident,
the provincial claim code must also be 0.
Claim code 0
You have to deduct tax according to the claim code. The claim code depends on the total personal amount an
employee claims on Form TD1.
Chapter 3 Claim codes
No indexing applies to Nova Scotia, Prince Edward Island, or Manitoba.
** Some changes to Yukon personal amounts are not directly attributable to indexing, because they have
harmonized amounts with the federal values.
* For Alberta and Ontario only, do not include any amounts on line 2, since all Alberta and Ontario credits are
indexed.
___________
___________
6. Enter the amount from line 2 (non-indexed amounts) ............................................................................... $

7. Revised factor TC or TCP (total of personal tax credits amounts) (line 5 plus line 6)............................ $
___see **___
___________
5. Multiply line 3 by line 4 (rounded to the nearest dollar) ........................................................................... $
___________
3. Amount subject to annual indexing (line 1 minus line 2) .......................................................................... $

4. Enter the indexing factor that applies for the year ......................................................................................
___________
2. Minus: any pension income amount, tuition fees, and full- or part-time
education amounts claimed on Form TD1*...................................................................................................... $
Amount
___________
1. Enter the total claim amount reported on Form TD1 ................................................................................. $
Description
You can use the following method to calculate the value of TC or TCP (personal tax credits amount) when indexing
applies:
Each year, certain personal tax credit amounts are indexed based on changes to the consumer price index. Since only
some of the amounts are indexed, we recommend that you record separately in your payroll records each item shown
on the employees or pensioners TD1 form. This will allow you to automatically increase the applicable indexed
claim amounts when necessary. This also means you will not have to ask your employees or pensioners to file a new
TD1 form when indexing applies.
Indexing of personal amounts
A separate worksheet, TD1-WS, is available for employees or pensioners who want to calculate partial claims for
some of the federal personal tax credits amounts.
Form TD1 was revised for 2015.
Formula to calculate the estimated federal and provincial or territorial tax

deductions (T) for the pay period
Federal Form TD1, 2015 Personal Tax Credits Return
V, V1, V2, S, and LCP = $0
Chapter 2 Personal tax credits returns (TD1 forms)
Outside Canada and in Canada beyond the limits of any province or territory:
(ii) 25% of the amount deducted or withheld during the year for the acquisition by the employee of
approved shares of the capital stock of a prescribed labour-sponsored venture capital corporation.
$0
0.098 TCP
K1P
K2P
V1
16,044.01 18,181.00
18,181.01 20,318.00
20,318.01 22,455.00
5
6
7
10
26
www.cra.gc.ca
Where:
T4 = (V A) KP K1P K2P K3P
Where V and KP are based on the value of A in the 2015 Saskatchewan tax rates and income
thresholds table.
T4 + V1 S LCP
27,797.50
25,660.50
23,523.50
21,386.50
19,249.50
17,112.50
14,975.50
12,838.50
10,701.50
9,633.00
0.00
Option 1, TCP = ($)
24,857.50
22,964.50
21,071.50
19,178.50
17,285.50
15,392.50
13,499.50
11,606.50
9,713.50
8,767.00
0.00
Option 1, TCP = ($)
www.cra.gc.ca
23,911.01 25,804.00
10
18,232.01 20,125.00
22,018.01 23,911.00
16,339,01 18,232.00
T2
14,446.01 16,339.00
Saskatchewan:
20,125.01 22,018.00
12,553.01 14,446.00
8,767.01 10,660.00
10,660.01 12,553.00
Quebec employers whose employees receive income from tips and gratuities should review the section called
Calculating payroll deductions for employees in the hotel and restaurant business in Quebec, in Publication T4032,
Payroll Deductions Tables.
8,767.00
No claim amount
0
1
Total claim amount ($)
Claim code
Telephone: .............................. 1-800-567-4692

Outside Canada:.................... 1-418-659-4692
23,524.50
2015 Newfoundland and Labrador claim codes
26,729.01 28,866.00
In this publication, we refer to the annual provincial or territorial tax deduction as factor T2. However, factor T2 does
not apply in the province of Quebec. Quebec administers its own provincial income tax and Quebec Pension Plan
contributions. If you have questions about the formulas for Quebec, please contact Revenu Qubec:
Revenu Qubec
3800 Marly Street
Ste-Foy QC G1X 4A5
24,592.01 26,729.00
Quebec:
22,455.01 24,592.00
13,907.01 16,044.00
S and LCP = $0
9,633.01 11,770.00
11,770.01 13,907.00
No claim amount
3,134
22,678.01 24,371.00
10
21,831.50
20,138.50
18,445.50
16,752.50
15,059.50
13,366.50
11,673.50
9,980.50
9,134.00
0.00
Option 1, TCP = ($)
2015 New Brunswick claim codes
20,985.01 22,678.00
Claim code
19,292.01 20,985.00
Where T4 $12,500,
V1 = $0
Where T4 > $12,500,
V1 = 0.10 (T4 $12,500)
and over
63,969
0
1,279
17,599.01 19,292.00
[(0.098 (P C, maximum $2,479.95)) + (0.098 (P EI, maximum $930.60))]*
0.167
63,969
15,906.01 17,599.00
9,633.00
0.098
0.138
31,984
31,984
Constant ($)
(KP)
14,213.01 15,906.00
12,520.01 14,213.00
4
5
10,827.01 12,520.00
9,134.01 10,827.00
9,134.00
No claim amount
2015 Manitoba claim codes

Claim code
Rate
(V)

2015 Prince Edward Island tax rates and income thresholds
Where:
Where V and KP are based on the value of A in the 2015 Prince Edward Island tax rates and
income thresholds table.
T4 + V1 S LCP
T2
Prince Edward Island:
LCP
Note
If Y is not used, any over deduction of tax will be considered when the individual files their income tax
and benefit return. When possible, use the Y factor.
1,914.03
1,768.27
1,622.51
1,476.74
1,330.98
1,185.22
1,039.46
893.70
747.94
675.06
0.00
Option 1, K1P = ($)
2,690.80
2,483.94
2,277.07
2,070.21
1,863.35
1,656.49
1,449.63
1,242.77
1,035.91
932.47
0.00
Option 1, K1P = ($)
2,540.65
2,357.80
2,174.96
1,992.11
1,809.27
1,626.43
1,443.58
1,260.74
1,077.89
986.47
0.00
Option 1, K1P = ($)
11
0.0879
0.1750
0.2100
29,590
59,180
93,000
150,000
and over
29,590
59,180
93,000
150,000
K2P
0.040 TCP
K1P
K2P
24
T2
Ontario:
0.090
0.115
85,243
138,586
and over
42,622
85,243
138,586
Where:
T4 + V1 + V2 S LCP
V1, S, and LCP = $0
0.040
42,622
www.cra.gc.ca
0.070
Rate
(V)

6,448
2,984
1,279
Constant ($)
(KP)
2015 Nunavut tax rates and income thresholds
Where:
Where V and KP are based on the value of A in the 2015 Nunavut tax rates and income thresholds
table.
T4 + V1 S LCP
The lesser of:

(i) $2,000; and
T2
Nunavut:
LCP
V1 and S = $0
0.0879 TCP
8,863
3,613
2,841
1,823
Constant ($)
(KP)
K1P
0.1667
0.1495
Rate
(V)

2015 Nova Scotia tax rates and income thresholds
Where:
Where V and KP are based on the value of A in the 2015 Nova Scotia tax rates and income
thresholds table.
9,863.01 11,988.00
18,363.01 20,488.00
9,308.01 10,908.00
10,908.01 12,508.00
12,508.01 14,108.00
14,108.01 15,708.00
15,708.01 17,308.00
17,308.01 18,908.00
18,908.01 20,508.00
20,508.01 22,108.00
3
4
5
6
7
8
9
10
17,652.01 19,665.00
19,665.01 21,678.00
3
4
27,717.01 29,730.00
29,730.01 31,743.00
31,743.01 33,756.00
8
9
10
32,749.50
30,736.50
28,723.50
26,710.50
24,697.50
22,684.50
20,671.50
18,658.50
16,645.50
15,639.00
0.00
Option 1, TCP = ($)
www.cra.gc.ca
25,704.01 27,717.00
23,691.01 25,704.00
7
21,678.01 23,691.00
15,639.01 17,652.00
15,639.00
No claim amount
21,308.00
19,708.00
18,108.00
16,508.00
14,908.00
13,308.00
11,708.00
10,108.00
8,508.00
7,708.00
0.00
Option 1, TCP = ($)
2015 Saskatchewan claim codes
7,708.01 9,308.00
No claim amount
7,708.00
Claim code
27,925.50
25,800.50
23,675.50
21,550.50
19,425.50
17,300.50
15,175.50
13,050.50
10,925.50
9,863.00
0.00
Option 1, TCP = ($)
2015 Prince Edward Island claim codes
26,863.01 28,988.00
24,738.01 26,863.00
22,613.01 24,738.00
Claim code
10
20,488.01 22,613.00
16,238.01 18,363.00
5
7
14,113.01 16,238.00
11,988.01 14,113.00
2
3
9,863.00
No claim amount
2015 Ontario claim codes

Claim code
3,602.45
3,381.02
3,159.59
2,938.16
2,716.73
2,495.30
2,273.87
2,052.44
1,831.01
1,720.29
0.00
Option 1, K1P = ($)
2,088.18
1,931.38
1,774.58
1,617.78
1,460.98
1,304.18
1,147.38
990.58
833.78
755.38
0.00
Option 1, K1P = ($)
1,410.24
1,302.93
1,195.61
1,088.30
980.99
873.68
766.36
659.05
551.74
498.08
0.00
Option 1, K1P = ($)
13
The lesser of:

(i) $2,000; and
LCP
K2P
and over
67,000
3,720
605
0.0968
0.1652
0.1784
39,973
79,946
129,975
and over
39,973
79,946
129,975
22
LCP
The lesser of:
V1 and S = $0
www.cra.gc.ca
0.0968 TCP
5,129
3,414
2,055
Constant ($)
(KP)
0.1482
Rate
(V)

2015 New Brunswick tax rates and income thresholds
Where:
Where V and KP are based on the value of A in the 2015 New Brunswick tax rates and income
thresholds table.
T4 + V1 S LCP
K1P
0.1740
67,000
K2P
T2
0.1080
0.1275
31,000
31,000
Constant ($)
(KP)
The lesser of:

(i) $1,800; and
New Brunswick:
LCP
V1 and S = $0
0.108 TCP
K1P
Rate
(V)
2015 Manitoba tax rates and income thresholds

K2
Pensionable income for the pay period, or the gross income plus any taxable benefits for the pay period, including
bonuses and retroactive pay increases where applicable
The number of pay periods left in the year (including the current pay period)
PI
PR
Tax deductions, i.e., bonuses or retroactive pay increases, payable now
T4
TB
www.cra.gc.ca
Annual basic federal tax

Annual basic provincial or territorial tax
T3
Annual provincial or territorial tax deduction (except Quebec)
T1
T2
Estimated federal and provincial or territorial tax deductions for the pay period
Annual federal tax deduction
Provincial tax reduction (only applies to Ontario and British Columbia)

Annualizing factor
S1
15
The number of pay periods in the year

P
Federal tax rate that applies to the annual taxable income A
The number of days since the last commission payment. The minimum basic exemption amount of $67.30 is
included in the formula in line with CPP legislation
N
Accumulated federal and provincial or territorial tax deductions (if any) to the end of the last pay period
LCP
Year-to-date tax deducted on all payments included in B year-to-date
Federal labour-sponsored funds tax credit

Provincial or territorial labour-sponsored funds tax credit (only applies to Newfoundland and Labrador, Nova Scotia,
Ontario, Manitoba, Saskatchewan, British Columbia, and Yukon)
LCF
M1
Additional tax deductions for the pay period requested by the employee or pensioner as shown on Form TD1
Canada employment credit (the lowest federal tax rate is used to calculate this credit)
Provincial or territorial Canada employment credit (only applies to Yukon)
Other provincial or territorial tax credits (such as medical expenses and charitable donations) authorized by a tax
services office or tax centre
K3P
K4P
Other federal tax credits (such as medical expenses and charitable donations) authorized by a tax services office or
tax centre
K3
K4
Quebec Pension Plan contributions, employment insurance premiums, and Quebec Parental Insurance Plan
premiums federal tax credits for the year (the lowest federal tax rate is used to calculate this credit)
K2Q
Provincial or territorial Canada Pension Plan contributions and employment insurance premiums tax credits for the
year (the lowest provincial or territorial tax rate is used to calculate this credit). If an employee reaches the maximum
CPP or EI for the year with an employer, the instructions in the note for the K2 factor also apply to the K2P factor.
For employees paid by commission, use the federal K2 formula for commissions and replace the lowest federal rate
in the K2 formula with the lowest provincial or territorial tax rate
Provincial or territorial non-refundable personal tax credit (the lowest tax rate is used to calculate this credit)
Federal Canada (or Quebec) Pension Plan contributions and employment insurance premiums tax credits for the
year (the lowest federal tax rate is used to calculate this credit). Note: If an employee has already contributed the
maximum CPP, EI, or QPIP for the year with the employer, use the maximum CPP, EI, or QPIP deduction to
determine the credit for the rest of the year. If, during the pay period in which the employee reaches the maximum,
the CPP, EI, or QPIP, when annualized, is less than the annual maximum, use the maximum annual deduction(s) in
that pay period
K1P
K2P
Provincial or territorial constant

Federal non-refundable personal tax credit (the lowest federal tax rate is used to calculate this credit)
K1
Where:
Where V and KP are based on the value of A in the 2015 Manitoba tax rates and income thresholds
table.
KP
Federal constant. The constant is the tax overcharged when applying the 22%, 26% and 29% rates to the annual
taxable income A
Insurable earnings for the pay period including insurable taxable benefits, bonuses, and retroactive pay increases
Total remuneration for the year reported on Form TD1X. This include commission payments, salary (where
applicable), non-periodic payments, and taxable benefits
I1
IE
Gross remuneration for the pay period. This includes overtime earned and paid in the same pay period, pension
income, qualified pension income, and taxable benefits, but does not include bonuses, retroactive pay increases, or
other non-periodic payments
Meaning (for complete details, see the formulas)
Factor
T4 + V1 S LCP
T2
Manitoba:
$0
[(IYTD FYTD F2YTD U1YTD) + (PR (I F F2 U1)) F1 HD]* + (B1 F4)**

** Result cannot be negative, and result cannot be negative after deducting CPP and EI.
Note
If the result above is $5,000 or less, deduct 15% tax (10% in Quebec) from the bonus or retroactive pay
increase.
[(IYTD FYTD F2YTD U1YTD) + (PR (I F F2 U1)) F1 HD]* + (B F3)** + (B1 F4)**
** Result cannot be negative, and result cannot be negative after deducting CPP and EI.
Annual taxable income without the non-periodic payment payable now

[(IYTD FYTD F2YTD U1YTD) + (PR (I F F2 U1)) F1 HD]* + (B1 F4)**
[($30,000 $1,350 $0 $150) + (22 ($1,100 $45 $0 $5)) $0 $0] + ($1,000 $0)
$28,500 + (22 $1,050) + $1,000
$52,600
Step 2
A =
=
=
=
=
20
T4
(V A) KP K1P K2P K3P K4P

www.cra.gc.ca
Formula to calculate annual basic provincial or territorial tax (T4)
Note
The formula above can be used to calculate the tax deductions on non-periodic payments such as accumulated
overtime not paid in the same pay period earned, paid vacation not taken by the employee, and bonuses.
After you have calculated the annual taxable income, factor A, in steps 1 and 2, calculate the factors T1 and T2 in the
same way as for regular remuneration.
Annual taxable income with the non-periodic payment payable now

[(IYTD FYTD F2YTD U1YTD) + (PR (I F F2 U1)) F1 HD]* + (B F3)** + (B1 F4)**
[($30,000 $1,350 $0 $150) + (22 ($1,100 $45 $0 $5)) $0 $0] + ($2,500 $1,000) + ($1,000 $0)
$28,500 + (22 $1,050) + $1,500 + $1,000
$54,100
Step 1
A =
=
=
=
=
Example for year-to-date bonus calculation method

In this example, an employee got a retroactive pay increase from $1,000 to $1,100 per week that applies to 25 weeks.
Therefore, a retroactive pay increase payment of $2,500 is payable now. $1,000 will be directed to the employees
RRSP. Thirty pay periods have passed and 22 pay periods remain in the year. Year-to-date income is $30,000,
year-to-date RPP is $1,350, and year-to-date union dues are $150. The current income is $1,100 with RPP withheld of
$45 and union dues of $5. The employee received a previous bonus of $1,000 with only CPP, EI, and tax withheld
from it.
Step 2
A
=
(2) Year-to-date bonus calculation (optional)

Step 1
Determine the annual tax (T1 + T2) based on the annual taxable income (factor A) with the non-periodic payment
payable now. The annual taxable income (factor A) is based on a year-to-date concept, plus the estimated income for
the rest of the pay periods in the year. YTD means year-to-date (before this pay period). The formula to calculate
factor A is as follows:
=
=
Annual taxable income

[P (I F F2 U1 )] HD F1
If the result is negative, T = L.
P
P
Monthly
Other
52 (or 53 where applicable)
10, 13, 22, or any other number of pay periods for the year
12
24
26 (or 27 where applicable)
Determine the tax deduction for the pay period using the F2 amount in 2.
3.
(P F1)/PR
T3
=
=
0.26
0.29
89,401
138,586
and over
89,401
138,586
www.cra.gc.ca
0.15
44,701
0
44,701
0.22
Rate
(R)

10,863
6,705
3,129
Constant ($)
(K)
2015 Federal tax rates and income thresholds

(R A) K K1 K2Q K3 K4
Annual basic federal tax

(R A) K K1 K2 K3 K4
17
Determine the alimony or maintenance payment to be withheld (F2). This will be either the maximum
allowable as a percentage of the employees net salary calculated in 1. or the amount shown in the
garnishment or order, whichever is less.
2.
If the F1 amount is implemented after the first pay period in the year, F1 must be adjusted using the
following formula:
Calculate the tax deduction amount and the net salary amount using the alimony or maintenance
amount shown in the garnishment or order.
1.
In situations where a garnishment or a similar order of a court or competent tribunal states that the
alimony or maintenance payment cannot be more than a certain percentage of the employees net salary
(net salary as defined in the garnishment or order), more calculations may be required, as follows:
=
=
Semi-monthly P
Biweekly
=
=
P
P
Weekly
The number of pay periods in the year:
* Estimated deduction amounts for the year. For registered retirement savings plan (RRSP) contributions
included in F, you will need to find out from your employee paid by commission the estimated or
expected annual deduction. We recommend that you caution employees not to exceed their RRSP
contribution limit for the year.
I1 F* F2* U1* HD F1 E
If the result is negative, T = L.
Formula to calculate basic federal tax (T3)
F1
F2
Only for employees paid by commission:
Formula to calculate annual taxable income (A)

03BookletFrontOnly ORG.t4127 15e

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

03BookletFrontOnly ORG.t4127 15e

Transféré par

Droits d'auteur :

Formats disponibles

T4127(E) Rev.

The Outside Canada surtax rate is 48%.

The Quebec abatement is 16.5%.

The Outside Canada surtax rate is 48%.

The Quebec abatement is 16.5%.

Tax bracket income thresholds

Tax bracket rates

Summary sheet for January 2015

Chapter 9 Summary sheets

Chapter 6 Option 2 Tax formula based on cumulative averaging .............................................................................

Chapter 5 Option 1 Tax formula ......................................................................................................................................

Chapter 3 Claim codes ..........................................................................................................................................................

Chapter 1 General information ...........................................................................................................................................

Use $2,630.25 for employees employed in Quebec.

The lesser of:

Use $2,630.25 for employees employed in Quebec.

The lesser of:

Special CPP situations

Formula to determine CPP contributionsonly for employees paid by

Formula to determine CPP contributions for employees receiving salary or

Chapter 7 Canada Pension Plan (CPP)

Spouse or common-law partner amount............................................................................................................

Federal labour-sponsored funds tax credit

(ii) 0.15 $1,146.

(i) 0.15 A; and

Canada employment credit

Disability amount ..................................................................................................................................................

Education and textbook amount for each month (full-time) ...........................................................................

Pension income amount .......................................................................................................................................

Caregiver amount for children under age 18 ....................................................................................................

Basic personal amount ..........................................................................................................................................

Federal personal amounts

Federal income thresholds

Whats new for January 1, 2015?

Projected annual taxable income

[(0.15 (0.0495 ((S1 PI) + B1 $3,500)*, maximum $2,479.95)) +

138,586 and over

The lesser of:

Formula to calculate the federal tax payable (T1)

Only for employees in Quebec:

Annual taxable income (A)

Federal tax rates and income thresholds for 2015

Only for employees in Quebec:

Formula to calculate basic federal tax (T3)

For complete information on personal amounts, see Form TD1SK.

$421 for each dependant under age 19*; and

$228 for the basic personal amount;

The provincial tax reduction amounts for 2015 are as follows:

Provincial tax reduction

Ontario provincial surtax

For complete information on personal amounts, see Form TD1ON.

For complete information on personal amounts, see Form TD1NU.

For complete information on personal amounts, see Form TD1NT.

For complete information on personal amounts, see Form TD1NL.

Newfoundland and Labrador

For complete information on personal amounts, see Form TD1NB.

Calculation of tax for the pay period

Chapter 6 Option 2 Tax formula based on

Federal, provincial, and territorial claim codes

Chapter 3 Claim codes

No indexing applies to Nova Scotia, Prince Edward Island, or Manitoba.

6. Enter the amount from line 2 (non-indexed amounts) ............................................................................... $

5. Multiply line 3 by line 4 (rounded to the nearest dollar) ........................................................................... $

3. Amount subject to annual indexing (line 1 minus line 2) .......................................................................... $