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2007 Canadian Payroll Tax Deduction Calculator

webTOD 2007 Help

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Employee Payroll Information HOW TO USE WEBTOD
Employee Payroll Information EMPLOYER INFORMATION
Employee Payroll Information EMPLOYEE PAYROLL INFORMATION
Employee Payroll Information CURRENT PERIOD PAYROLL AMOUNTS
HOW TO USE WEBTOD
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  1. Select the type of income on which the payroll tax deductions are to be calculated - click on one of the income categories shown on the tabs near the top of the screen. The income categories are:
    • Regular Salary - use this tab for calculating deductions on Regular salary and wage income.
    • Pension - use this tab for calculating deductions on Pension income.
    • Bonus - use this tab for calculating deductions on a Bonus payment, whether it is being paid in addition to Regular salary and/or wages, or being paid separately. This calculator should also be used when accrued Vacation Pay related to more than one payroll period is being paid out as a lump-sum payment.
    • Retroactive Pay - use this tab for calculating deductions on a Retroactive Pay Increase, whether it is being paid in addition to the current pay period's Regular salary and/or wages, or being paid separately.
    • Commission - use this tab for calculating deductions on Commission income where the employee is remunerated ONLY by commission. For employees remunerated by a combination of salary/wages and commissions, use the Regular salary and wage income calculator tab.
  2. Enter data into the Employee Payroll Information fields. Required data fields are highlighted and are noted with an asterick *:
    • Pay period
    • Province/Territory of employment
    • TD1 tab - Federal TD1 Total Claim Amount
    • TD1X tab - Annual Remuneration (commission only employees)
    • TD1X tab - Annual Commission Expenses (commission only employees)
    • TD1(P) tab - Provincial/Territorial TD1P Total Claim Amount (non-Quebec employees only)
    • TP-1015.3-V tab - Quebec Total Claim Amount (Quebec employees only)
  3. Optionally, enter data for year-to-date payroll amounts on the YTD tab of the Employee Payroll Information section. These amounts are used only to determine if the maximum annual deduction limits for CPP, EI or QPIP (Quebec) have been reached.
  4. Enter data for Current Pay Period Amounts. Be sure to enter amounts for any required data fields *, depending on the type of income.
  5. To calculate deductions, click the 'Calculate Deductions' button at the bottom of the calculator screen. The appropriate payroll tax deductions, including Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Employment Insurance (EI), Quebec Parental Insurance Premiums (QPIP), and federal and provincial/territorial income tax deductions will be calculated and displayed in a Payroll Advice format which will appear in a new browser window. This Payroll Advice can be printed as a record of the calculation.
  6. To perform a new calculation, return to the webTOD calculator browser window by closing the Payroll Advice window, or by clicking in the webTOD window.
  7. To clear information relating to a previous calculation from the webTOD calculator window, you can click on the 'Clear Form' button near the bottom of the webTOD calculator screen. This will reset all data fields in the calculator to their initial default values.
 
EMPLOYER NAME
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Enter the Employer's name. This field is optional - a blank field will be accepted by the application. If a value is entered, it will appear at the top of the Payroll Advice screen showing the results for the calculation. A browser 'cookie' will be stored on your computer so that the same Employer name will appear when you use the webTOD application in the future.

 
EMPLOYEE PAYROLL INFORMATION
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Employee Name

Enter the Employee's name. This field is optional - a blank field will be accepted by the application. If a value is entered, it will appear as the 'Payee' on the Payroll Advice screen showing the results for the calculation.

Social Insurance Number (SIN)

Enter the employee's Social Insurance Number (SIN). This field is optional - a blank field (or the default value 000 000 000) will be accepted by the application. If a value is entered, it will appear on the Payroll Advice screen showing the results for the calculation. If you wish to validate a SIN before calculating the payroll deductions, enter the SIN and click on the 'Validate' button beside the field. The entered number will be validated and a message will appear to inform you whether the entered number is a valid SIN or not. Employers should note that they are required to obtain valid Social Insurance Numbers from all employees.

Pay Period

Select the appropriate Pay Period definition from the list. This field is required - a blank field will not be accepted by the application. A browser 'cookie' will be stored on your computer so that the same Pay Period definition will be automatically selected as the default when you use the webTOD application in the future.

Province/Territory of Employment

Select the appropriate Province or Territory of Employment from the list. This field is required - a blank field will not be accepted by the application. A browser 'cookie' will be stored on your computer so that the same Province/Territory will be automatically selected as the default when you use the webTOD application in the future. The appropriate Province or Territory of Employment is usually the province/territory where the Employer is located, or where the Employee is required to report for work. If an Employee works from home and is not required to report for work at the Employer's workplace, then the Province/Territory of Employment is the Employee's province of residence.

 
TD1 (Federal)
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Total Claim Amount

Select the appropriate Federal Tax Credit Claim Code from the list. This field is required - the default Claim Code 1 (Basic Claim Amount) will be used if you do not select an alternate Claim Code. The Claim Code is based on the Total Claim Amount from the Employee's federal TD1 form which should be filed with the Employer. Select the Claim Code corresponding to the range within which the Employee's Total Claim Amount falls. Note that employers are required to obtain a completed and signed federal TD1 form from all employees, however a new TD1 form is not required each year if the employee's Total Claim Amount does not change from the previous year.

Total income less than Claim Amount

If the employee's total income for the year from ALL employers and payers will be less than the Total Claim Amount on line 12 of their TD1, then the employee will indicate this in the appropriate section on the back of the TD1. If so, then the employer or payer should not deduct any federal tax from the employee's earnings. If the employee has checked this box on the back of the Federal TD1, you can indicate this by clicking on this box to place a checkmark in it, and webTOD will NOT calculate a deduction for federal tax.

Deduction for living in a prescribed zone

Enter the amount to deduct for the annual deduction for living in a prescribed zone from the appropriate section on the back of the employee's TD1. This field is optional - the default amount of $0.00 will be used if you do not enter an amount. This amount is used in determining the Employee's estimated annual taxable income.

Requested additional tax deduction

Enter the amount of the Employee's requested additional tax deduction per period, which the Employee requests by filling in the appropriate amount on back of the Federal TD1 form. This field is optional - the default amount of $0.00 will be used if you do not enter an amount. The amount entered will be added to the calculated federal and provincial/territorial tax deductions for each pay period.

Reduction in annual amount subject to income tax

Enter the amount of an approved reduction in the annual amount subject to income tax for the Employee. This approved reduction must be evidenced by a letter from a tax services office, a copy of which should be retained by the Employee in the Employee's payroll file. This field is optional - the default amount of $0.00 will be used if you do not enter an amount. This amount is used in determining the Employee's estimated annual taxable income.

 
TD1X (Commissioned employees only)
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Total annual remuneration

Enter the amount of total annual remuneration (including commissions and salary/wages) from the employee's TD1X form. This is a required field for commission deduction calculations - and the amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will cause an application error.

Annual commission expenses

Enter the amount of annual commission expenses claimed by the employee on the TD1X. This field is optional and will default to $0.00.

 
TD1(P) - Provincial/Territorial (except Quebec)
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Total Claim Amount

Select the appropriate Provincial/Territorial Tax Credit Claim Code from the list. This field is required - the default Claim Code 1 (Basic Claim Amount) will be used if you do not select an alternate Claim Code. The Claim Code is based on the Total Claim Amount from the Employee's Provincial or Territorial TD1P form which should be filed with the Employer. Select the Claim Code corresponding to the range within which the Employee's Total Claim Amount falls.

Total income less than Claim Amount

If the employee's total income for the year from ALL employers and payers will be less than the Total Claim Amount on line 12 of their TD1P, then the employee will indicate this in the appropriate section on the back of the TD1P. If so, then the employer or payer should not deduct any provincial (except Quebec) tax from the employee's earnings. If the employee has checked this box on the back of the Provincial/Territorial TD1P, you can indicate this by clicking on this box to place a checkmark in it, and webTOD will NOT calculate a deduction for provincial (except Quebec) tax.

 
TP1015.3-V (Quebec employees only)
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Total Claim Amount

Select the appropriate Quebecl Tax Credit Claim Code from the list. This field is required - the default Claim Code A (Basic Claim Amount) will be used if you do not select an alternate Claim Code. The Claim Code is based on the Total Claim Amount from the Employee's Quebec TP-1015.3-V form which should be filed with the Employer. Select the Claim Code corresponding to the range within which the Employee's Total Claim Amount falls.

Total income less than Claim Amount

If the employee's total income for the year from ALL employers and payers will be less than the Total Claim Amount on line 10 of the TP-1015.3-V times 1.25 plus the amount on line 19, then the employee will indicate this in box 20 on the form. If so, then the employer or payer should not deduct any Quebec tax from the employee's earnings. If the employee has checked this box on the TP-1015.3-V form, you can indicate this to webTOD by clicking on this box on the webTOD screen to place a checkmark in it, and webTOD will NOT calculate a deduction for Quebec tax.

Requested additional tax deduction

Enter the amount of the Employee's requested additional tax deduction per period, which the Employee requests by filling in the appropriate amount on line 11 of the TP-1015.3-V form. This field is optional - the default amount of $0.00 will be used if you do not enter an amount. The amount entered will be added to the calculated Quebec tax deductions for each pay period.

Additional deductions/credits (line 19)

Enter the amount of an approved reduction in the annual amount subject to income tax for the Employee. This approved reduction must be evidenced by a letter from a tax services office, a copy of which should be retained by the Employee in the Employee's payroll file. This field is optional - the default amount of $0.00 will be used if you do not enter an amount. This amount is used in determining the Employee's estimated annual taxable income.

 
EXEMPTIONS - CPP/QPP, EI & QPIP
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If the Employee is exempt from CPP/QPP, EI, or QPIP (Quebec), check the appropriate box.

 
YEAR-TO-DATE DEDUCTIONS
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Year-to-date amounts are optional fields and will default to $0.00. Amounts entered in these fields are used only to determine if the annual limits for CPP/QPP and EI deductions have been reached when calculating deductions for the current pay period.

CPP/QPP deducted

Enter the total amount of Employee CPP/QPP contributions deducted from previous payrolls during the current year . This field is optional - it will default to $0.00.

EI deducted

Enter the total amount of Employee EI contributions deducted from previous payrolls during the current year . This field is optional - it will default to $0.00.

QPIP deducted (Quebec)

Enter the total amount of Employee QPIP contributions deducted from previous payrolls during the current year . This field is optional - it will default to $0.00.

 
CURRENT PERIOD PAYROLL AMOUNTS
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Pay Period ending date

Enter the current pay period ending date to appear on the Pay Advice. Enter the date in the format dd/mm/yyyy, or click in the field to display a calendar tool for automatically selecting and entering a date. This field is optional - it will default to the current date.

Payment date

Enter the payment date you to appear on the Pay Advice. Enter the date in the format dd/mm/yyyy, or click in the field to display a calendar tool for automatically selecting and entering a date. This field is optional - it will default to the current date.

 
Income
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Gross salary/wages

Enter the amount of regular salary and/or wages to be paid for the current pay period. This field is required and the amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will cause an application error. If you are calculating the tax deductions for a Bonus or a Retroactive Pay Increase that is being paid as a lump-sum payment separately from the Employee's regular paycheque, enter the Employee's most recent regular salary/wages per pay period in order to be able to properly estimate the Employee's annual taxable income and calculate the amount of tax deductions applicable to the Bonus or Retroactive Pay Increase.

Pension income

Enter the amount of pension income to be paid for the current pay period. This field is required for Pension deduction calculations and the amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will cause an application error.

Paid vacation

Enter the amount of any vacation pay being paid out for the current pay period. For example, if vacation pay is paid in every pay period as a percentage of the gross earnings, include the calculated vacation pay amount in this field. Do NOT include vacation pay amounts that relate to more than one pay period. If you need to calculate the tax deductions for a lump-sum payment of accrued vacation pay, you should use the Bonus deduction calculator.

Taxable cash benefits

Enter the amount of any taxable cash benefits paid for the current pay period. This field is optional and will default to $0.00. Normally only cash benefits (e.g. taxable auto allowances, living allowances) are considered to be insurable for EI.

Taxable non-cash benefits

Enter the amount of any taxable non-cash benefits received by the Employee for the current pay period. This field is optional and will default to $0.00. Most benefits in kind (non-cash benefits) are not insurable for EI.

Current bonus payable

Enter the amount of the current bonus (or other non-periodic lump-sum payment). The amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will generate an error message. If you are calculating the tax deductions for a Bonus that is being paid as a lump-sum payment separately from the Employee's regular paycheque, you must also enter the Employee's most recent regular salary/wages per pay period in the Gross salary/wages field in order to be able to properly estimate the Employee's annual taxable income and calculate the amount of tax deductions applicable to the Bonus.

Previous bonus(es)

Enter the amount of any previous bonus(es) paid to the Employee during the current year. This field is optional - the default amount is $0.00.

Show bonus only on pay advice

For Bonus deduction calculations, you can choose to show only the calculated deductions for the bonus payment or the calculated deductions for both the regular salary/wages amounts for the pay period plus the bonus payment. If the bonus is being paid as an additional income item on the reqular payroll period payment, un-check this box. If the bonus is paid separately from the regular payroll period payment, leave the this box checked (default).

Retroactive pay increase

Enter the amount of the Retroactive Pay Increase payable. This field is required (if you are calculating tax deductions on a Retroactive Pay Increase payment) and the amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will cause an application error. If you are calculating the tax deductions for a Retroactive Pay Increase that is being paid as a lump-sum payment separately from the Employee's regular paycheque, you must also enter the Employee's most recent regular salary/wages per pay period in the Gross salary/wages field in order to be able to properly estimate the Employee's annual taxable income and calculate the amount of tax deductions applicable to the Retroactive Pay Increase.

Retroactive pay periods

Enter the number of pay periods over which the Retroactive Pay Increase is calculated. This field is required (if you are calculating tax deductions on a Retroactive Pay Increase payment) and the number entered must be greater than 0 - the default value is 1 - a blank field or a number less than 1 will cause an application error.

Show retro-pay only on pay advice

For Retroactive Pay deduction calculations, you can choose to show only the calculated deductions for the retroactive pay amount or the calculated deductions for both the regular salary/wages amounts for the pay period plus the retroactive pay amount. If the retroactive pay amount is being paid as an additional income item on the reqular payroll period payment, un-check this box. If the retroactive pay amount is paid separately from the regular payroll period payment, leave this box checked (default).

Gross commission payment

Enter the amount of the current gross commission payment. This field is required (if you are calculating tax deductions on a Commission payment) and the amount entered must be greater than $1.00 - a blank field or an amount less than $1.00 will cause an application error.

Days since last 2006 commission payment

Enter the number of days elapsed since the previous commission payment (if any) in the 2006 taxation year. If this is the first commission payment of the year, enter 0. This field is optional - the default value is 0 days (1st payment of the year).

 
Deductions
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Note: To qualify as deductions in determining taxable income for purposes of calculating payroll tax deductions, the following amounts must be deducted directly from the Employee's payroll cheque:

RPP/RRSP Contribution

Enter the amount of Registered Pension Plan (RPP) or Registered Retirement Savings Plan (RRSP) contributions to be deducted from the Employee's paycheque for the current pay period. This field is optional and will default to $0.00.

Union dues

Enter the amount of Union dues to be deducted from the Employee's paycheque for the current pay period. This field is optional and will default to $0.00.

Alimony/maintenance payments

Enter the amount of any Alimony or Family Maintenance payments to be deducted from the Employee's paycheque for the current pay period. This field is optional and will default to $0.00.

RRSP, etc. deducted from Bonus or Retroactive Pay Increase

For calculations of payroll taxes on Bonuses or Retroactive Pay Increases, enter the amount of any additional Registered Retirement Savings Plan (RRSP) contributions or other taxable deductions to be deducted from the Bonus or Retroactive Pay Increase. This field is optional and will default to $0.00.

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