Budgets propose mix of changes

No immediate source deductions changes announced in federal budget, but payroll departments in Newfoundland and Labrador have to prepare for new tax rates
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 06/01/2015

For payroll, this year’s federal budget could be summed up by saying, "No changes to CPP contributions, EI premiums or federal income tax deductions this year." But that would not tell the full story.

Although this year’s budget, which Finance Minister Joe Oliver tabled on Apr. 21, did not contain any adjustments to source deduction rates for 2015, it did include a number of payroll-related proposals.

Beginning next year, the budget proposes to change the rules for source deduction remittances for new employers so they can send in remittances quarterly instead of monthly. To qualify, new employers must have monthly withholdings of less than $1,000 and maintain a perfect compliance record with the Canada Revenue Agency (CRA). Remittances would be due on Apr. 15, Jul. 15, Oct. 15 and Jan. 15 of the following year.