September Tax Update for Ontario Only

So, we didn’t get off tax update free after all! Ontario has passed their budget and included in this budget is a tax item to be updated.

Note:

  • This update is only required if you have employees in Ontario.
  • This update is only required if you have employees earning over $150,000.
  • This represents only 2% of Ontarians.
  • These tax calculations will be retroactive to January 1, 2014.
  • There is only a 1% tax increase for the earnings between $150,000 and $519,090. However, affected employees will see a 3% to 6% increase in their Ontario taxes from September to December to compensate for this retroactive tax.
  • These deductions should start September 1, 2014.
  • CRA has agreed to a no penalty approach for employers.
  • If the tax update is not installed, the employee can opt to have additional tax taken off their pay.

For more information go to:

http://www.payroll.ca/cpadocs/Legislative_Briefing_Ontario_Personal_Tax_Changes_FINAL.pdf

CRA recognizes the difficulty in updating computer programs and has indicated that if this is not done, there will be no penalty to the employer. However, Microsoft is releasing a tax update to accommodate. There is no release date yet, however, if you check these tax update pages you will be able to monitor as soon as this file is available.

Note too that this update will include R2! You will LOVE IT!

2010 tax update page
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/cagptuye2010

2013 tax update page
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/cagptuye2013

 

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