What's new for payroll

Payroll tables

The Canada Revenue Agency (CRA) will publish a September 1, 2014 version of the Ontario payroll tables to incorporate proposed increases to personal income tax rates tabled in the Ontario budget on July 14, 2014. As the proposed changes are retroactive to January 1, 2014, the revised tables will reflect the necessary prorated tax rates to allow employers to withhold the correct additional amounts from employees between September and the final pay of 2014. The changes to the tables apply to employees who earn more than $150,000 in 2014.

The September 1, 2014, version of Guide T4127, Payroll Deductions Formulas for Computer Programs is now available on the CRA website.

The updated payroll deductions online calculator and the electronic version of the T4008 Payroll Deductions Supplementary Tables and T4032 Payroll Deductions Tables for Ontario will be available on our website by mid-August.

The paper and CD version of the T4032 will be available by the end of August.

More request options for employers

Employers can now request to transfer a misallocated credit within a payroll program account or from a payroll program account to another program account. They can also request a payment search for a payment that has been made but has not been credited to the account. For more information, go to My Business Account.

New income code for the T4 slip

Code 88, Indian (exempt income) – Self-employment, is a new income code that was created for the Other information area of the T4 slip. Use this new code to report tax‑exempt self‑employment income paid to an Indian who is a fisher, barber or hairdresser, taxi driver or driver of other passenger carrying vehicles. For more information, see Guide RC4120, Employers' Guide - Filing the T4 Slip and Summary.

New income codes for the T4A slip

New income codes have been created for the Other information area of the T4A slip:

  • Code 136, Federal Income Support for Parents of Murdered or Missing Children grant (PMMC);
  • Code 162, Pre-1990 past service contributions while not a contributor;
  • Code 194, Pooled registered pension plan (PRPP) annuity payments from taxable income;
  • Code 195, Indian (exempt income) – PRPP payments.

For more information, see Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary.

Receive your PD7A or PD7A(TM) online

You can choose to receive your PD7A/PD7A(TM), Statement of account for current source deductions online. Once you have registered for online mail through our Manage online mail service, the CRA will no longer print and mail the PD7A/PD7A(TM) forms to you. Instead, you will receive an email to notify you when there is mail to view in your secure online account. For more information, go to E-services for Businesses.

Cancellation of the web access code letters

We are no longer mailing web access code (WAC) letters. You can use the WAC that was issued for the 2012 tax year to file future information returns or obtain one at Filing Information Returns Electronically (T4/T5 and other types of returns).

T4 and T1204 Desktop applications

Effective December 2013, the CRA will no longer provide the T4 and T1204 Desktop applications. Users of these applications can file their information returns  with our convenient Web Forms or Internet file transfer applications.

Direct deposit is now available for payroll accounts

Employers are now able to sign up for direct deposit using the new Form RC366, Direct Deposit Request for Businesses.

Changes to CPP deductions

Since 2012, employers may have to deduct CPP contributions from the pensionable earnings they pay an employee who is 60 to 70 years of age, even if the employee is receiving a CPP or QPP retirement pension. See Changes to the rules for deducting Canada Pension Plan (CPP) contributions for more information.

Hiring credit for small business

Under proposed changes, the hiring credit for small business (HCSB) will be expanded and extended for 2013. If you are eligible, the CRA will automatically calculate the amount of your hiring credit using the EI information from the T4 slips you filed with your 2012 and 2013 T4 information returns.

Since 2013, employers have the option to make an online request using My Business Account to get their HCSB refunded to them.

For more information, go to Hiring credit for small business (HCSB).

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