Legislative roundup: Changes in payroll laws and regulations from across Canada

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2014 will be $52,500 — up from $51,100 in 2013, the Canada Revenue Agency (CRA) has announced.

The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $52,500 in 2014 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2014 remains $3,500.

The employee and employer contribution rates for 2014 will remain unchanged at 4.95 per cent, and the self-employed contribution rate will remain unchanged at 9.9 per cent.

The maximum employer and employee contributions to the plan for 2014 will be $2,425.50 each, and the maximum self-employed contribution will be $4,851.00. The maximums in 2013 were $2,356.20 and $4,712.40.

Alberta

2014 reminder: No tax rate changes

The personal income tax rate in the province will remain 10 per cent on all taxable income for 2014.

Please note that although this is the rate that will apply as of January 1, 2014, the 2014 provincial budget could propose changes. The budget is normally released in late winter/early spring.

British Columbia

2014 reminder: MSP premiums rising

Effective Jan. 1, British Columbia plans to increase Medical Services Plan (MSP) premium rates. For a single person, the maximum premium is expected to increase from $66.50 per month to $69.25. The maximum premium for a family of two is expected to increase from $120.50 per month to $125.50 and for a family of three or more it is expected to increase from $133.00 per month to $138.50.

Effective Jan. 1, British Columbia will implement a new tax bracket and tax rate for individuals with taxable incomes exceeding $150,000. The rate for the bracket will be 16.8 per cent. The change will apply for the 2014 and 2015 tax years.

The other provincial personal income tax rates will remain: 5.06 per cent, 7.7 per cent, 10.5 per cent, 12.29 per cent and 14.7 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.

Manitoba

2014 reminder: No tax rate changes

Effective Jan. 1, 2014, personal income tax rates and ranges in Manitoba will remain unchanged. Individuals with a $0.01 – $31,000 taxable income range will have a 10.8 per cent tax rate and a $0 constant. Individuals with a $31,000.01 – $67,000 taxable income range will have a 12.75 per cent tax rate and a $605 constant. Individuals with a taxable income range of more than $67,000.01 will have a 17.4 per cent tax rate and a $3,720 constant.

Effective Jan. 1, Manitoba’s basic personal amount, spouse or common-law partner amount and eligible dependant amount claimed on a Manitoba Personal Tax Credits Return (TD1MB) will increase from $8,884 to $9,134.

New Brunswick

2014 reminder: No tax rate changes

Effective Jan. 1, personal income tax rates in New Brunswick will remain as follows: 9.68 per cent, 14.82 per cent, 16.52 per cent and 17.84 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.

Newfoundland and Labrador

2014 reminder: No tax rate changes

Effective Jan. 1, the provincial personal income tax rates in Newfoundland and Labrador will remain as follows: 7.7 per cent, 12.5 per cent and 13.3 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.

Northwest Territories

2014 reminder: No tax rate changes

Effective Jan. 1, the territorial personal income tax rates will remain as follows: 5.9 per cent, 8.6 per cent, 12.2 per cent and 14.05 per cent.

Nova Scotia

2014 reminder: HST rate going down

Effective Jan. 1, the rate for the Harmonized Sales Tax (HST) in Nova Scotia will decrease from 15 per cent to 14 per cent. This is the result of the Nova Scotia government lowering the provincial portion of the tax from 10 per cent to nine per cent.

In 2015, the HST rate will be 13 per cent, with the provincial portion being eight per cent.

Nunavut

2014 reminder: No tax rate changes

Effective Jan. 1, the territorial personal income tax rates will remain as follows four per cent, seven per cent, nine per cent and 11.5 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.

Ontario

2014 reminder: No tax rate changes

Effective Jan. 1, Ontario’s provincial personal income tax rates will remain as follows: 5.05 per cent, 9.15 per cent, 11.16 per cent and 13.16 per cent.

Effective Jan. 1, Ontario proposes to increase the exemption amount for the Employment Health Tax (EHT) and to restrict the exemption to employers whose annual Ontario payroll is no more than $5 million.

Legislation to enact the changes is currently before the Legislative Assembly. Bill 105, the Supporting Small Businesses Act, 2013, would increase the exemption amount for the EHT from $400,000 to $450,000 for the years 2014 to 2018.

Beginning in 2019, the exemption amount would be tied to inflation, with the exemption being adjusted every five years using the Consumer Price Index for Ontario.

The bill would also eliminate the exemption amount for private-sector employers whose annual Ontario payroll exceeds $5 million. Associated employers would not be able to claim the exemption if their combined total Ontario payroll was more than the $5 million exemption threshold for the group.

Prince Edward Island

2014 reminder: No tax rate changes

Effective Jan. 1, the P.E.I. personal income tax rates and ranges will remain at 9.8 per cent, 13.8 per cent and 16.7 per cent.

Quebec

QPIP maximum insurable earnings, CNT levy increasing in 2014

Both the maximum insurable earnings amount for the Quebec Parental Insurance Plan (QPIP) and the maximum amount subject to the levy to finance the Commission des normes du travail will increase from $67,500 to $69,000 on Jan. 1.

The province had previously announced that for 2014 employer and employee QPIP premium rates would remain at their current levels of 0.559 per cent and 0.782 per cent, respectively.

Saskatchewan

2014 reminder: No tax rate changes

Effective Jan. 1, the Saskatchewan provincial personal income tax rates will remain as follows: 11 per cent, 13 per cent and 15 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.