What's new for payroll

Changes to CPP deductions

Starting January 1, 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 CPP deductions for more information.

Wage loss replacement plan payments

Under new legislation that passed in December 2011, payments from uninsured Wage Loss Replacement Plans are considered employment income and therefore, are subject to Canada Pension Plan (CPP) contributions.

For more information, see Wage loss replacement plans.

Hiring Credit for Small Business

You may be eligible for a one-time Hiring Credit for Small Business. To find out more, go to Hiring Credit for Small Business (HCSB).

Payroll Deductions Online Calculator

We have made enhancements to the Payroll Deductions Online Calculator to better serve your needs. These include:

• implementing the "employer's Employment Insurance (EI) premium rate" field if a reduced EI premium rate applies to your business;
• providing revised step-by-step help instructions for each category and each page throughout the process;
• providing general information for the new CPP contributions rules in "What is new for CPP?" on the sidebar list; and
• displaying the most frequently asked questions in "FAQ."

New payroll deduction formulas (T4127)

The information in this publication is effective January 1, 2012. This publication replaces the 94th edition of the Payroll Deductions Formulas for Computer Programs. Go to T4127, Payroll Deductions Formulas for Computer Programs for more information.

Payroll Deductions Tables (T4032)

CD version of Publication T4032, Payroll Deductions Tables

The CD version of Publication T4032, Payroll Deductions Tables, effective January 1, 2012, is offered in bilingual format and includes payroll deductions for all the provinces (except the Quebec provincial table) and territories, Canada Pension Plan contributions, and employment insurance premiums. The CD version can be used on any computer, with or without Internet access, and contains the same information as the paper version. Paper copies will remain available for employers who do not use a computer. To get a copy, employers can call 1-800-959-2221.

As of December 15, 2011, we encourage you to use the new online versions of Publication T4032, Payroll Deductions Tables. The new online structure makes it easier to navigate through the document and print only the information you need as the T4032 online version is now laid out in a pay period format.

Note
The CD and paper versions of Publication T4032 will be available at the end of December 2011.

Payroll Deductions Supplementary Tables (T4008)

As of December 15, 2011, we encourage you to use the new online versions of Publication T4008, Payroll Deductions Supplementary Tables. The new online structure makes it easier to navigate through the document and print only the information you need, as the T4008 online version is now laid out in a pay period format.

T4A slip, fees for services

The T4A slip redesign involved assigning unique box codes to each of the different income types previously reported in Box 28 - other income. Payments for fees for services were assigned to Box 048. Until such time as the CRA undertakes a review for the purposes of clarifying the types of fees for services that are to be reported on the T4A slip, taxpayers will not be penalized for failing to complete Box 048.

Automobile deduction limits and expense benefit rates for 2012

For information about 2012 automobile deduction limits and expense benefit rates, visit Finance Canada.

Automobile Benefits Online Calculator

For your payroll benefit amount calculation, you can use the Automobile Benefits Online Calculator to calculate automobile benefits for employees and shareholders.

T4A slip redesign

Similar to the redesign of the other major form types such as the T3, T4, T4E and T5, the Canada Revenue Agency has redesigned the T4A form using the T4 as a template. The T4A form uses pre-printed boxes with a number, income name and area to report the amount for the most commonly reported amounts. Other less commonly reported amounts are reported using generic boxes known as "Other Information" boxes.

This form design simplifies reporting requirements, reduces the burden for the filer, and increases data quality. Additionally the design provides the flexibility to meet current and future T4A reporting requirements without making significant changes to the form. For more information, go to T4A slip redesign.

Reporting of retiring allowances

Since January 2011 (for the 2010 taxation year), you must use the T4 slip instead of the T4A slip to report eligible and non-eligible retiring allowance amounts (including those amounts paid to Indians). This reduces the burden of filing both a T4 slip and a T4A slip for many filers. The T4A slip should still be used to report these types of income for 2009 and prior years.

New tool for gifts and awards

We have created a new tool to assist in determining if a gift, award or long-service award is a taxable benefit to the employee. Go to Rules for gifts and awards, then select the "Q&A" icon where you can answer a series of questions to help you determine if there is a taxable benefit.