Source: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables/t4032pe/t4032pe-january-general-information.html
Timestamp: 2020-05-26 10:25:51
Document Index: 43416426

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Payroll Deductions Tables - CPP, EI, and income tax deductions - Prince Edward Island - 2019 - Canada.ca
T4032PE Payroll Deductions Tables - Prince Edward Island - Effective January 1, 2020
T4032-PE(E) Rev. 20
Prince Edward Island tax for 2020
Chart 2 – 2020 Prince Edward Island tax rates and income thresholds
Chart 4 – 2020 Prince Edward Island claim codes
There are no changes to the Prince Edward Island personal income tax for 2020.
The Prince Edward Island basic personal amount is $10,000 for 2020.
For 2020, the Prince Edward Island tax rates and income thresholds are:
0.00 to 31,984.00 9.8% 0
31,984.01 to 63,969.00 13.8% 1,279
63,969.01 and over 16.7% 3,134
For 2020, Prince Edward Island's surtax is:
where the basic provincial tax payable is less than or equal to $12,500, the surtax is $0 and
where the basic provincial tax payable is greater than $12,500, the rate is 10% of the basic provincial tax payable over $12,500
For 2020, the Prince Edward Island non-refundable personal tax credits are:
Basic personal amount $10,000
Spouse or common-law partner amount $8,493
Amount for an eligible dependant $8,493
For more detailed information on the personal amounts, see Form TD1PE, 2020 Prince Edward Island Personal Tax Credits Return.
The total personal amount an employee claims on a TD1 will determine which claim code you use. The claim amounts that correspond to the federal claim codes are not the same as the claim amounts that correspond to the provincial claim codes. See Chart 3 and Chart 4.
The credits that apply to each federal claim code have been automatically changed in the tax tables by the indexing factor for the current year. If your employee did not complete the federal and provincial TD1 forms for 2020, you continue to deduct income tax using the same claim code that you used last year.
10,000.01 to 10,800.00 2
10,800.01 to 12,400.00 3
12,400.01 to 14,000.00 4
14,000.01 to 15,600.00 5
15,600.01 to 17,200.00 6
17,200.01 to 18,800.00 7
18,800.01 to 20,400.00 8
20,400.01 to 22,000.00 9
22,000.01 to 23,600.00 10
23,600.01 and over X
In the row under the applicable claim code, you will find the amount of provincial tax that you should withhold from your employee's pay (for more information, see the section called "Claim codes " and Chart 4)
You are an employer in Prince Edward Island. Sara, your employee, earns $1,018 a week in 2019. She has a federal claim code 1 and a provincial claim code 1.
To determine Sara's provincial tax deductions, you use the weekly provincial tax deductions table. In the Prince Edward Island tax deductions table, the provincial tax deduction for $1,018 weekly under claim code 1 is $90.05.
Sara's total tax deduction is $198.25 ($108.20 + $90.05). This amount of taxes will be included in your remittance to us.
(14) Basic provincial tax for Prince Edward Island:
Multiply the amount on line 6 by the provincial tax rate based on Chart 2. $8,037.12
(15) Minus the provincial constant based on the annual taxable income on line 6 (see Chart 2) − (1,279.00)
(16) Provincial tax on income for Prince Edward Island (line 14 minus line 15) $6,758.12
- the total of personal tax credit amounts reported on Form TD1PE 10,000.00
Total 13,754.36
(18) Multiply the total on line 17 by the lowest provincial tax rate for the year. × 0.098
(19) Total provincial tax credits − (1,347.93)
(20) Basic provincial tax (line 16 minus line 19) $5,410.19
(21) Provincial surtax:
- where line 20 is less than or equal to $12,500, the surtax is $0
- where line 20 is greater than $12,500, the surtax is 10% of line 20 that exceeds $12,500 + 0.00
(22) Total provincial tax payable for the year (line 20 plus 21). $5,410.19
If the result is negative, substitute $0. $12,085.79
Divide the amount on line 23 by the number of pay periods in the year (52). $232.42