Income Tax Regulations — 102
al Arrangements and Federal Post-Secondary Education and Health Contributions Act ; and (h) [Repealed, SOR/92-667, s. 1] (i) the amount to be deducted or withheld shall be computed by (i) dividing the amount of the notional tax for the year by the maximum number of pay periods for the year in respect of the appropriate pay period, and (ii) rounding the amount determined under subparagraph (i) to the nearest multiple of five cents or, if such amount is equidistant from two such multiples, to the higher multiple. (2) Where an employee has elected pursuant to subsection 107(2) and has not revoked such election, the amount to be deducted or withheld by the employer from any payment of remuneration (in this subsection referred to as the payment ) that is (a) a payment in respect of commissions or is a combined payment of commissions and salary or wages, or (b) a payment in respect of salary or wages where that employee receives a combined payment of commissions and salary or wages, made to that employee in his taxation year where he reports for work at an establishment of the employer in a province, in Canada beyond the limits of any province or outside Canada, shall be determined for each payment in accordance with the following rules: (c) an employee’s estimated annual taxable income shall be determined by using the formula A - B where A is the amount of that employee’s total remuneration in respect of the year as recorded by the employee on the form referred to in subsection 107(2), and B is the amount of that employee’s expenses in respect of the year as recorded by that employee on that form; (d) if the employee is not resident in Canada at the time of the payment, no personal credits will be allowed for the purposes of this subsection and if the employee is resident in Canada at the time of the payment, the employee’s personal credits for the year shall be the total claim amount as recorded by that employee on the return for the year referred to in subsection 107(1); (e) an amount (in this subsection referred to as the notional tax for the year ) shall be calculated in respect of that employee by using the formula C - [(D + E + F) × G] + H - I where C is the amount of tax payable for the year, calculated as if that amount of tax were computed under subsection 117(2) of the Act and adjusted annually pursuant to section 117.1 of the Act, on the amount determined under paragraph (c) as if that amount represented the employee’s amount taxable for that year, D is the amount determined in accordance with paragraph (d), E is the amount determined in the description of A in paragraph (c) multiplied by the employee’s premium rate for the year under the Employment Insurance Act , not exceeding the maximum amount of the premiums payable by the employee for the year under that Act, F is the amount determined in the description of A in paragraph (c) less the amount for the year determined under section 20 of the Canada Pension Plan multiplied by the employee’s contribution rate for the year under that Act or under a provincial pension plan as defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the employee for the year under the plan, G is the appropriate percentage for the year, H is, where applicable, the tax as determined under subsection 120(1) of the Act, I is, where the amount of total remuneration for the year is income earned in the Province of Quebec, an amount equal to the aggregate of (i) the amount that would be deemed to have been paid under subsection 120(2) of the Act with respect to the employee if the notional tax for the year for the employee were determined without reference to the elements H, I and J in this formula and if that tax were that employee’s tax payable under Part I of the Act for that year, as if there were no other source of income or loss for the year, and (ii) the amount by which the amount referred to in subparagraph (i) is increased by virtue of section 2