Spreadsheet: 207504d1358471669-ontario-2013-canada-payroll-formula-new
Sheet: Federal

 |  | NOTE: Yellow cells contain formulas - Blue cells contain data from CRA which is used in formulas and MAY need changing each year
 |  |  | Federal Tax Rates and Income Thresholds |  |  |  |  |  |  |  | Payroll Deductions [NAME] for Computer Programs
 |  |  |  | Thresholds | Rate (R) | Constant (K) |  |  | Page
 |  |  |  | 0 | 0.15 | 0 |  |  | 28 |  | STEP 1: [NAME] to calculate annual taxable income (A)
 |  |  | 43561 |  | 0.22 | 3049 |  |  |  |  | A = | P x I
 |  |  | 87123 |  | 0.26 | 6534 |  |  |  |  |  |  | P = | Pay Periods in year
 |  |  | 135054 |  | 0.29 | 10586 |  |  |  |  |  |  | I = | Gross Income for period
 |  |  | Canada Employment Credit |  |  |  |  |  | 29 |  | STEP 2: [NAME] to calculate basic federal tax (T3)
 |  |  |  | [NAME] | 1117 |  |  |  |  |  | T3 = | (R × A) – K – K1 – K2 – K3 – K4
 |  |  |  |  |  |  |  |  |  |  |  |  | R = | Federal tax rate applicable to annual taxable income A
 |  |  | Canada Pension Plan (CPP) and Employment Insurance (EI) |  |  |  |  |  |  |  |  |  | A = | Annual taxable income
 |  |  |  |  |  |  |  |  |  |  |  |  | K = | Federal Constant from Table
 |  |  |  | CPP | EI |  |  |  |  |  |  |  | K1 = | Federal non-refundable personal tax credit
 |  |  | Rate: | 0.0495 | 0.0188 |  |  |  |  |  |  |  |  | K1 = | minimum R x TC
 |  |  | Exemption: | 3500 |  |  |  |  |  |  |  |  |  | TC = | Total Claim on Form TD1
 |  |  | [NAME]: | 51100 | 47400 |  |  |  |  |  |  |  | K2 = | CPP and EI payments
 |  |  | [NAME]: |  |  |  |  |  |  |  |  |  |  | K2 = | [(min R × (P x C)) + (min R x (P × EI))]
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Note: Each part limited to [NAME] amounts
 |  |  | Federal Claim Codes |  |  |  |  |  |  |  |  |  |  | min R = | minimum tax rate
 |  | Place X | Claim Code | No More Than | Amount | Amount |  |  |  |  |  |  |  | P = | Pay Periods in year
 |  |  | 0 | No claim | 0 | 0 |  |  |  |  |  |  |  | C = | current CPP payment
 |  | X | 1 | 11038 |  | 1655.7 |  |  |  |  |  |  |  | EI = | current EI payment
 |  |  | 2 | 13147 |  | 1813.88 |  |  |  |  |  |  | K3 = | Other federal tax credits - N/A
 |  |  | 3 | 15256 |  | 2130.23 |  |  |  |  |  |  | K4 = | Canada Employment Credit
 |  |  |  |  |  |  |  |  |  |  |  |  |  | K4 = | the lesser of
 |  |  |  |  |  |  |  |  |  |  |  |  |  | i) | min tax rate (R) x annual income (A)
 |  |  |  |  |  |  |  |  |  |  |  |  |  | ii) | min tax rate (R) x set amount
 |  |  |  |  |  |  |  |  | 31 |  | STEP 3: [NAME] to calculate the annual federal tax payable (T1)
 |  |  |  |  |  |  |  |  |  |  | T1 = | T3 - LCF | if negative, then 0
 |  |  |  |  |  |  |  |  |  |  |  |  | LCF = | Labour-sponsored funds tax credit = N/A
 |  |  |  |  |  |  |  |  | 41 |  | STEP 4: [NAME] to calculate annual basic Ontario (T4)
 |  |  | Payroll Deductions [NAME] for Computer Programs |  |  |  |  |  |  |  | T4 = | (V × A) – KP – K1P – K2P – [NAME] – K4P
 |  |  |  |  |  |  |  |  |  |  |  |  | V= | Provincial or territorial tax rate for the year
 |  |  | STEP 1: [NAME] to calculate annual taxable income (A) |  |  |  |  |  |  |  |  |  |  | comes from table
 |  |  | A = | P x I |  |  |  |  |  |  |  |  | A= | Annual taxable income
 |  |  |  |  | P = | Pay Periods in year |  |  |  |  |  |  | KP= | Provincial or territorial constant
 |  |  |  |  | I = | Gross Income for period |  |  |  |  |  |  |  | comes from table
 |  |  |  |  |  |  |  |  |  |  |  |  | K1P= | Provincial or territorial non-refundable personal tax credit
 |  |  | STEP 2: [NAME] to calculate basic federal tax (T3) |  |  |  |  |  |  |  |  |  |  | 0.0505 × TCP
 |  |  | T3 = | (R × A) – K – K1 – K2 – K3 – K4 |  |  |  |  |  |  |  |  |  | TCP=
 |  |  |  |  | R = | Federal tax rate applicable to annual taxable income A |  |  |  |  |  |  | K2P= | CPP contributions and EI premiums provincial tax credits for the year
 |  |  |  |  | A = | Annual taxable income |  |  |  |  |  |  |  | [(0.0505 × (P × C, [NAME]. $2,163.15)) + (0.0505 × (P × EI, [NAME]. $747.36))]*
 |  |  |  |  | K = | Federal Constant from Table |  |  |  |  |  |  |  |  | P =
 |  |  |  |  | K1 = | Federal non-refundable personal tax credit |  |  |  |  |  |  |  |  | C =
 |  |  |  |  |  | K1 = | minimum R x TC |  |  |  |  |  |  |  | EI =
 |  |  |  |  |  | TC = | Total Claim on Form TD1 |  |  |  |  |  | K3P= | Not applicable
 |  |  |  |  | K2 = | CPP and EI payments |  |  |  |  |  |  | K4P= | Yukon only
 |  |  |  |  |  | K2 = | [(min R × (P x C)) + (min R x (P × EI))]
 |  |  |  |  |  |  | Note: Each part limited to [NAME] amounts
 |  |  |  |  |  | min R = | minimum tax rate |  | 41 |  | STEP 5: [NAME] to calculate annual Ontario tax deduction (T2)
 |  |  |  |  |  | P = | Pay Periods in year |  |  |  | T2 = | T4 + V1 + V2 – S – LCP
 |  |  |  |  |  | C = | current CPP payment |  |  |  |  |  | T4 = | Annual basic provincial or territorial tax
 |  |  |  |  |  | EI = | current EI payment |  |  |  |  |  | V1 = | Provincial surtax calculated on the basic provincial tax
 |  |  |  |  | K3 = | Other federal tax credits - N/A |  |  |  |  |  |  |  | Where T4 ≤ $4,006
 |  |  |  |  | K4 = | Canada Employment Credit |  |  |  |  |  |  |  | V1 = 0
 |  |  |  |  |  | K4 = | the lesser of |  |  |  |  |  |  | Where T4 > $4,006 ≤ $5,127
 |  |  |  |  |  | i) | min tax rate (R) x annual income (A) |  |  |  |  |  |  | V1 = 0.20 × (T4 – $4,006)
 |  |  |  |  |  | ii) | min tax rate (R) x set amount |  |  |  |  |  |  | Where T4 > $5,127
 |  |  |  |  |  |  |  |  |  |  |  |  |  | V1 = 0.20 × (T4 – $4,006) + 0.36 × (T4 – $5,127)
 |  |  | STEP 3: [NAME] to calculate the annual federal tax payable (T1) |  |  |  |  |  |  |  |  |  | V2 = | Ontario Health Premium only
 |  |  | T1 = | T3 - LCF | if negative, then 0 |  |  |  |  |  |  |  |  | Where A ≤ $20,000, V2 = $0
 |  |  |  |  | LCF = | Labour-sponsored funds tax credit = N/A |  |  |  |  |  |  |  | Where A > $20,000 ≤ $36,000, V2 = the lesser of:
 |  |  |  |  |  |  |  |  |  |  |  |  |  | (i) $300; and
 |  |  | STEP 4: [NAME] to calculate annual basic Ontario (T4) |  |  |  |  |  |  |  |  |  |  | (ii) 0.06 × (A – $20,000)
 |  |  | T4 = | (V × A) – KP – K1P – K2P – [NAME] – K4P |  |  |  |  |  |  |  |  |  | Where A > $36,000 ≤ $48,000, V2 = the lesser of:
 |  |  |  |  | V= | Provincial or territorial tax rate for the year |  |  |  |  |  |  |  | (i) $450; and
 |  |  |  |  |  | comes from table |  |  |  |  |  |  |  | (ii) $300 + (0.06 × (A – $36,000))
 |  |  |  |  | A= | Annual taxable income |  |  |  |  |  |  |  | Where A > $48,000 ≤ $72,000, V2 = the lesser of:
 |  |  |  |  | KP= | Provincial or territorial constant |  |  |  |  |  |  |  | (i) $600; and
 |  |  |  |  |  | comes from table |  |  |  |  |  |  |  | (ii) $450 + (0.25 × (A – $48,000))
 |  |  |  |  | K1P= | Provincial or territorial non-refundable personal tax credit |  |  |  |  |  |  |  | Where A > $72,000 ≤ $200,000, V2 = the lesser of:
 |  |  |  |  |  | 0.0505 × TCP |  |  |  |  |  |  |  | (i) $750; and
 |  |  |  |  |  | TCP= |  |  |  |  |  |  |  | (ii) $600 + (0.25 × (A – $72,000))
 |  |  |  |  | K2P= | CPP contributions and EI premiums provincial tax credits for the year |  |  |  |  |  |  |  | Where A > $200,000, V2 = the lesser of:
 |  |  |  |  |  | [(0.0505 × (P × C, [NAME]. $2,163.15)) + (0.0505 × (P × EI, [NAME]. $747.36))]* |  |  |  |  |  |  |  | (i) $900; and
 |  |  |  |  |  |  | P = |  |  |  |  |  |  | (ii) $750 + (0.25 × (A – $200,000))
 |  |  |  |  |  |  | C = |  |  |  |  |  | S= | Provincial tax reduction
 |  |  |  |  |  |  | EI = |  |  |  |  |  |  | The lesser of:
 |  |  |  |  | K3P= | Not applicable |  |  |  |  |  |  |  | (i) T4 + V1 | and
 |  |  |  |  | K4P= | Yukon only |  |  |  |  |  |  |  | (ii) [2 × ($206 + Y)] – [T4 + V1].
 |  |  |  |  |  |  |  |  |  |  |  |  |  | If the result is negative, S = $0.
 |  |  |  |  |  |  |  |  |  |  |  |  |  | Y = Additional provincial tax reduction based on applicable amounts reported on Form TD1ON
 |  |  | STEP 5: [NAME] to calculate annual Ontario tax deduction (T2) |  |  |  |  |  |  |  |  |  | LCP= | labour-sponsored funds tax credit = N/A
 |  |  | T2 = | T4 + V1 + V2 – S – LCP
 |  |  |  |  | T4 = | Annual basic provincial or territorial tax
 |  |  |  |  | V1 = | Provincial surtax calculated on the basic provincial tax |  |  | 45 |  | FINAL STEP: [NAME] to calculate the tax deductions (T) for the pay period
 |  |  |  |  |  | Where T4 ≤ $4,006 |  |  |  |  | T = | [(T1 + T2) / P] + L |  | if negative, then 0
 |  |  |  |  |  | V1 = 0 |  |  |  |  |  |  | T1 = | Annual federal tax deduction
 |  |  |  |  |  | Where T4 > $4,006 ≤ $5,127 |  |  |  |  |  |  | T2 = | Annual provincial tax deduction
 |  |  |  |  |  | V1 = 0.20 × (T4 – $4,006) |  |  |  |  |  |  | P = | Pay Periods in year
 |  |  |  |  |  | Where T4 > $5,127 |  |  |  |  |  |  | L = | Requested additional tax deductions
 |  |  |  |  |  | V1 = 0.20 × (T4 – $4,006) + 0.36 × (T4 – $5,127)
 |  |  |  |  | V2 = | Ontario Health Premium only
 |  |  |  |  |  | Where A ≤ $20,000, V2 = $0
 |  |  |  |  |  | Where A > $20,000 ≤ $36,000, V2 = the lesser of:
 |  |  |  |  |  | (i) $300; and
 |  |  |  |  |  | (ii) 0.06 × (A – $20,000)
 |  |  |  |  |  | Where A > $36,000 ≤ $48,000, V2 = the lesser of:
 |  |  |  |  |  | (i) $450; and
 |  |  |  |  |  | (ii) $300 + (0.06 × (A – $36,000))
 |  |  |  |  |  | Where A > $48,000 ≤ $72,000, V2 = the lesser of:
 |  |  |  |  |  | (i) $600; and
 |  |  |  |  |  | (ii) $450 + (0.25 × (A – $48,000))
 |  |  |  |  |  | Where A > $72,000 ≤ $200,000, V2 = the lesser of:
 |  |  |  |  |  | (i) $750; and
 |  |  |  |  |  | (ii) $600 + (0.25 × (A – $72,000))
 |  |  |  |  |  | Where A > $200,000, V2 = the lesser of:
 |  |  |  |  |  | (i) $900; and
 |  |  |  |  |  | (ii) $750 + (0.25 × (A – $200,000))
 |  |  |  |  | S= | Provincial tax reduction
 |  |  |  |  |  | The lesser of:
 |  |  |  |  |  | (i) T4 + V1 | and
 |  |  |  |  |  | (ii) [2 × ($206 + Y)] – [T4 + V1].
 |  |  |  |  |  | If the result is negative, S = $0.
 |  |  |  |  |  | Y = Additional provincial tax reduction based on applicable amounts reported on Form TD1ON
 |  |  |  |  | LCP= | labour-sponsored funds tax credit = N/A
 |  |  | FINAL STEP: [NAME] to calculate the tax deductions (T) for the pay period
 |  |  | T = | [(T1 + T2) / P] + L |  | if negative, then 0
 |  |  |  |  | T1 = | Annual federal tax deduction
 |  |  |  |  | T2 = | Annual provincial tax deduction
 |  |  |  |  | P = | Pay Periods in year
 |  |  |  |  | L = | Requested additional tax deductions