With TONI, you will calculate provincial tax by applying provincial tax rates to the taxable income amount.
Taxable income is the same for both federal and provincial tax calculation purposes.
There is no change to the methods of calculating income tax for employees in the Northwest Territories, Nunavut, Quebec, Yukon, or outside Canada. For all provinces with personal provincial tax credit amounts that differ from the federal tax credit amounts, a separate provincial Form TD1 will be provided. You may have to ask your employees and pensioners to complete both a federal and provincial Form TD1 for 2001. Refer to the instructions on Form TD1 to determine who needs to complete it. However, to allow employees and pensioners a reasonable period of time to complete and return the signed TD1 forms, CCRA will authorize employers and payers, for the initial pay periods of 2001, to use the federal TD1 information already on file to estimate the appropriate 2001 provincial tax credits for their employees or pensioners.