Income Tax Regulations — 103
103 (1) Where a payment in respect of a bonus or retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer (including the bonus or retroactive increase) may reasonably be expected not to exceed $5,000 in the taxation year of the employee in which the payment is made, the employer shall deduct or withhold, in the case of an employee who reports for work at an establishment of the employer (a) in any province, 10 per cent, or (b) in Canada beyond the limits of any province or outside Canada, 15 per cent, (c) to (n) [Repealed, SOR/2001-221, s. 3] of such payment in lieu of the amount determined under section 102. (2) Where a payment in respect of a bonus is made by an employer to an employee whose total remuneration from the employer (including the bonus) may reasonably be expected to exceed $5,000 in the taxation year of the employee in which the payment is made, the amount to be deducted or withheld therefrom by the employer is (a) the amount determined under section 102 in respect of an assumed remuneration equal to the aggregate of (i) the amount of regular remuneration paid by the employer to the employee in the pay period in which the remuneration is paid, and (ii) an amount equal to the bonus payment divided by the number of pay periods in the taxation year of the employee in which the payment is made minus (b) the amount determined under section 102 in respect of the amount of regular remuneration paid by the employer to the employee in the pay period multiplied by (c) the number of pay periods in the taxation year of the employee in which the payment is made. (3) Where a payment in respect of a retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer (including the retroactive increase) may reasonably be expected to exceed $5,000 in the taxation year of the employee in which the payment is made, the amount to be deducted or withheld therefrom by the employer is (a) the amount determined under section 102 in respect of the new rate of remuneration minus (b) the amount determined under section 102 in respect of the previous rate of remuneration multiplied by (c) the number of pay periods in respect of which the increase in remuneration is retroactive. (4) Subject to subsections (4.1) and (5), where a lump sum payment is made by an employer to an employee who is a resident of Canada, (a) if the payment does not exceed $5,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer (i) in Quebec, 5 per cent, (ii) in any other province, 7 per cent, or (iii) in Canada beyond the limits of any province or outside Canada, 10 per cent, (iv) to (xiv) [Repealed, SOR/2001-221, s. 3] of such payment in lieu of the amount determined under section 102; (b) if the payment exceeds $5,000 but does not exceed $15,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer (i) in Quebec, 10 per cent, (ii) in any other province, 13 per cent, or (iii) in Canada beyond the limits of any province or outside Canada, 20 per cent, (iv) to (xiv) [Repealed, SOR/2001-221, s. 3] of such payment in lieu of the amount determined under section 102; and (c) if the payment exceeds $15,000, the employer shall deduct or withhold therefrom, in the case of an employee who reports for work at an establishment of the employer (i) in Quebec, 15 per cent, (ii) in any other province, 20 per cent, or (iii) in Canada beyond the limits of any province or outside Canada, 30 per cent, (iv) to (xiv) [Repealed, SOR/2001-221, s. 3] of such payment in lieu of the amount determined under section 102. (4.1) For the purposes of a lump sum payment described in paragraph (6)(h), subsection (4) is to be read without reference to its paragraphs (b) and (c) and the portion of subsection (4) before subparagraph