Payroll Modifications Effective January 1, 2021

 

Version in date of September 19, 2024 - Printable Document

 

This maestro*EXPRESS offers guidelines to update payroll calculation parameters. The amounts to be used are provided for general guidance only. The information is taken from publications issued by tax authorities (TP-1015.F-V by Revenu Québec and T4127 by the Canada Revenue Agency).

 

These changes should be made after the last 2020 payroll but before processing your first 2021 payroll.

 

The values in the tables of this document are specific to each province and territory; where there are no corresponding values in the table, leave the field empty in maestro*. The screenshots in this document can come from different versions of maestro*, may differ from your current version and/or display previous years. We recommend that you carefully check the amounts that you enter into maestro* to ensure that they correspond correctly to your particular situation. It should be noted it is the users’ responsibility to validate whether they are using the correct rates and to keep informed of any changes to their applicable rates.

 

Summary

To access a specific section, click the corresponding link:

• Definition of the 2021 Payroll Periods
  • Configuration of the Payroll Periods
• Modifications to Quebec Payroll
  • Define the AECQ Contribution Dates (Applicable to CCQ-Regulated Employees)
• Modifications to Government Tables
  • Provincial Rates Tab
    • Provincial Rates for 2021
    • Safety Board Amount / Annual Max.
    • W/C – CSST Provision (Quebec only)
    • Insurance Tax Rate for 2021 – (Quebec Only)
    • Labour Standards for 2021 – (Quebec Only)
  • Federal Rates Tab
    • Federal Rates for 2021
  • Provincial Tax Tab
    • Provincial Tax for 2021
    • Nova Scotia Additional Basic Deduction Table
    • Income Tax Table
    • Health Care Deduction Table – (Ontario Only)
    • Applicable Tax Reduction Table – (Only Ontario and British Columbia)
  • Federal Tax Tab
    • Tax Rate and Federal Income Thresholds for 2021
    • Employment Tax Credit
    • Basic Deduction Adjustment

 

Definition of the 2021 payroll periods

REMINDER: When you close the last 2020 pay period and transfer to accounting, the vacation balance and advances will be added to the starting cumulative amounts for the new year.

 

Configuration of the Payroll Periods

maestro* > Time Management > Maintenance > Payroll > Set Pay Periods

1. On the Set Pay Periods window, click the New icon.
2. Enter the Year of the defined payroll period.
3. Enter the Committee affected by the defined payroll period.
4. Enter the start of the year date, end of the year date, and the number of periods.
5. Click the Apply icon to view the pay periods in the grid.
6. Click the Save icon.
7. Click the Quit.

 

The new periods will only be visible in the selections when the active payroll year is 2021.

 

Modifications to Quebec Payroll

Define the AECQ Contribution Dates (Applicable to CCQ-Regulated Employees)

maestro* > Time Management > Maintenance > Payroll > Define Committees

The Association des entrepreneurs en construction du Québec (AECQ) contribution must be paid in a single instalment, in full, on November 15 of each year. To change the payment date, you must enter the date October 15 in the Define Committees option, as shown below.

 

Modifications to Government Tables

maestro* > Time Management > Maintenance > Payroll > Government Tables

1. On the Government Tables window, in the Detail section, select the code of the province for which you want to change the tax parameters.
2. Where required, enter the appropriate information in the various tabs and sections as described in the following pages.

 

Provincial Rates Tab

 

Provincial Rates for 2021

Enhancement to the Quebec Pension Plan (QPP)

To align itself with the Canada Pension Plan (CPP) contribution rate enhancement, the Québec Pension Plan (QPP) will also increase its contribution rate. The enhancement will be carried out in two phases, over several years.

In this document, the enhanced contributions have already been added to the basic contributions. The suggested government constant update reflects the changes made to the QPP.

For more information on the QPP contribution rate enhancement, please visit the Retraite Québec website.

Enter in Section 1 of the Government Tables option.

 

Fields	Quebec	Ontario
QPP - Factor/Rate (Employee section)	0.0590
QPP - Basic Exempt. ($) (Employee section) Basic general exemption	3500
QPP - Annual Max. ($) (Employee section) Maximal employee contribution	3,427.90
QPP - Factor/Rate (Employer section)	1.00
Parental Insurance - Factor/Rate (Employee section)	0.00494
Parental Insurance - Annual Max. ($) (Employee section)	412.49
Parental Insurance - Factor/Rate (Employer section)	0.00692
Parental Insurance - Annual Max. ($) (Employer section)	577.82
Healthcare Deduction (Employer section)	Between 0.0165 and 0.0426	Between 0.0098 and 0.0195

 

New - British Columbia Employer Health Tax Since January 1, 2019, British Columbia employers with remuneration higher than $500,000 must register for the new Employer Health Tax. The employer health tax applies to remuneration paid to employees who: report for work at an employer’s permanent establishment located in British Columbia, or do not report for work at an employer’s permanent establishment, but are paid by an employer’s establishment located in British Columbia. Employers affected by this new health tax can obtain additional information – which covers the required steps to configure the tax in maestro* – by referring to the maestro*EXPRESS titled British Columbia Employer Health Tax Starting January 1, 2019.

 

Safety Board Amount / Annual Max.

Enter in Section 2 – Safety Board of the Government Tables option.

Click the Define WC/CSST icon to enter the weekly and yearly values.

You MUST enter the effective start date to ensure no previous values get overwritten.

To view the change made to the Define WC/CSST amount, modify the computer date to one in 2021.

 

Provinces and Territories	Safety Board
	Weekly Maximum ($)	Annual Maximum ($)
Quebec	1,601.46	83,500
Ontario		102,800
Alberta		98,700
British Columbia		100,000
Prince Edward Island		55,300
Manitoba		127,000
New Brunswick		67,100
Nova Scotia		64,500
Nunavut		97,300
Saskatchewan		91,100
Newfoundland and Labrador		67,985
Northwest Territories		97,300
Yukon		91,930

 

W/C – CSST Provision (Quebec only)

Enter in Section 2 – W/C - CSST Provision of the Government Tables option.

 

Fields	Quebec
W/C – CSST Provision
Rate

 

Insurance Tax Rate for 2021 – (Quebec Only)

Enter in Section 3 of the Government Tables option.

 

Fields	Quebec
Insurance Tax Rate	9.00

 

Labour Standards for 2021 – (Quebec Only)

Enter in Section 4 of the Government Tables option.

 

Fields	Quebec
Max. Labour	83,500
Rate Represents the contribution rate for the Commission des normes du travail (CNT, now CNESST) financing	0.07

 

Federal Rates Tab

 

Federal Rates for 2021

Increase of the insurable remuneration maximum for employment insurance

This rate is directly managed by maestro*. The insurable remuneration maximum for employment insurance will increase from $54 200 to $56 300.

To know the annual and proportional rates of your reduction premiums for 2021, consult the following link: EI Premium Reduction Program

Enhancement to the Canada Pension Plan (CPP)

Starting January 1, 2020, the contribution rate for the Canada Pension Plan (CPP) will be gradually enhanced to increase Canadians’ retirement revenue. The enhancement will be carried out in two phases, over several years.

In this document, the enhanced contributions have already been added to the basic contributions. The suggested government constant update reflects the changes made to the CPP.

For more information on the CPP contribution rate enhancement, please visit the Canada Revenue Agency website.

Complete the window above using the values specific to your province.

 

Provinces and Territories	Quebec	All Other Provinces
Employment Insurance - Factor/Rate (Employee section) Employment Insurance Contribution Rate	0.0118	0.0158
Employment Insurance - Annual Max.($) (Employee section) Employee Contributions Max. Yearly Amount	664.34	889.54
Employment Insurance - Factor/Rate (Employer section)	1.40	1.40
Pension Plan - Factor/Rate (Employee section)		0.0545
Pension Plan - Basic Exempt.($) (Employee section)		3500
Pension Plan - Annual Max.($) (Employee section)		3,166.45
Pension Plan - Factor/Rate (Employer section)		1.0

 

Provincial Tax Tab

 

Provincial Tax for 2021

Enter in Section 1 of the Government Tables option.

 

Quebec Fields Quebec Mode Quebec Basic Deduction 15,728 Constant A 0.0600 Maximum B 1205 Credit Rate 0.15 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2	Ontario Fields Ontario Mode Ontario Basic Deduction 10,880 Constant A   Maximum B   Credit Rate 0.0505 Surtax - Level 1 4874 Rate - Surtax 1 0.200 Surtax - Level 2 6237 Rate - Surtax 2 0.360
Alberta Fields Alberta Mode Alberta Basic Deduction 19,369 Constant A   Maximum B   Credit Rate 0.10 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2	British Columbia Fields British Columbia Mode British Columbia Basic Deduction 11,070 Constant A   Maximum B   Credit Rate 0.0506 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2
Prince Edward Island Fields Prince Edward Island Mode Prince Edward Island Basic Deduction 10500 Constant A   Maximum B   Credit Rate 0.098 Surtax - Level 1 12,500 Rate - Surtax 1 0.100 Surtax - Level 2   Rate - Surtax 2	Manitoba Fields Manitoba Mode Manitoba Basic Deduction 9936 Constant A   Maximum B   Credit Rate 0.1080 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2
New Brunswick Fields New Brunswick Mode N.B. Basic Deduction 10,564 Constant A   Maximum B   Credit Rate 0.0940 or 0.0912* Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2   * Only if the employee's credit rate was 0.0968 for the first six months of 2021	Nova Scotia Fields Nova Scotia Mode N.S. Basic Deduction 8481 Constant A   Maximum B   Credit Rate 0.0879 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2
Nunavut Fields Nunavut Mode Nunavut Basic Deduction 16,467 Constant A   Maximum B   Credit Rate 0.0400 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2	Saskatchewan Fields Saskatchewan Mode Sask. Basic Deduction 16,225 Constant A   Maximum B   Credit Rate 0.1050 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2
Newfoundland and Labrador Fields Newfoundland Mode NFLD Basic Deduction 9536 Constant A   Maximum B   Credit Rate 0.0870 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2	Northwest Territories Fields Northwest Territories Mode N.W.T. Basic Deduction 15,243 Constant A   Maximum B   Credit Rate 0.0590 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2
Yukon Fields Yukon Mode Yukon Basic Deduction 13,808 Constant A   Maximum B   Credit Rate 0.064 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2

Nova Scotia Additional Basic Deduction Table

Starting in 2018, the basic deduction amount was increased by $3,000 – going from $8,481 to $11,481. An individual whose taxable income does not exceed $25,000 will be authorized to claim the full $3,000 increase. Those with a taxable income over $25,000 will see the increase reduced by 6% of their taxable income. Last, individuals whose taxable income is $75,000 or more will not benefit from any increase.

 

Enter in Section 4 of the Government Tables option.

 

Fields	Nova Scotia
Basic Personal Amount ($)	3,000
Minimum Income ($)	25,000
Maximum Income ($)	75,000
Adjustment Rate	0.06

 

Income Tax Table

Enter in Section 2 of the Government Tables option.

 

(Indexation of Taxable Income)

Provinces and Territories	Amount ($)	Constant K	Rate T
Quebec	0 45,105 90,200 109,755	0 2,255 5,863 7,783	15.00 20.00 24.00 25.75
Ontario	0 45,142 90,287 150,000 220,000	0 1,851 3,666 5,166 7,366	5.05 9.15 11.16 12.16 13.16
Alberta	0 131,220 157,464 209,952 314,928	0 2,624 4,199 6,299 9,448	10.00 12.00 13.00 14.00 15.00
British Columbia	0 42,184 84,369 96,866 117,623  159,483 222,420	0 1,114 3,476 5,210 8,045 11,384 19,623	5.06 7.70 10.50 12.29 14.70 16.80 20.50
Prince Edward Island	0 31,984 63,969	0 1,279 3,134	9.80 13.80 16.70
Manitoba	0 33,723 72,885	0 658 4,047	10.80 12.75 17.40
New Brunswick	0 43,835 87,671 142,534 162,383	0 2,499 3,989 5,870 9,865	9.40 or9.12* 14.82 16.52 17.84 20.30
	* Only if the employee's rate was 9.68 for the first six months of 2021
Nova Scotia	0 29,590 59,180 93,000 150,000	0 1,823 2,841 3,613 8,863	8.79 14.95 16.67 17.50 21.00
Nunavut	0 46,740 93,480 151,978	0 1,402 3,272 7,071	4.00 7.00 9.00 11.50
Saskatchewan	0 45,677 130,506	0 914 3,524	10.50 12.50 14.50
Newfoundland and Labrador	0 38,081 76,161 135,973 190,363	0 2,209 3,199 5,238 7,142	8.70 14.50 15.80 17.30 18.30
Northwest Territories	0 44,396 88,796 144,362	0 1,199 4,395 7,066	5.90 8.60 12.20 14.05
Yukon	0 40,020 98,040 151,978 500,000	0 1,275 3,137 6,025 17,025	6.40 9.00 10.90 12.80 15.00

 

Health Care Deduction Table – (Ontario Only)

Enter in Section 3 of the Government Tables option.

 

Applicable Province	Amount ($)	Constant	Rate	Maximum
Ontario	20,000	0	0.06	300
	36,000	300	0.06	450
	48,000	450	0.25	600
	72,000	600	0.25	750
	200,000	750	0.25	900

 

Applicable Tax Reduction Table – (Only Ontario and British Columbia)

Enter in Section 4 of the Government Tables option.

 

 

Fields	Ontario	British Columbia
Basic Personal Amount ($) NOTE: The base amount is $251, however, you will need to enter $502 because maestro* must calculate $251 x 2. This note only applies to Ontario.	502	481
Amount for Eligible Dependents	464
Minimum Income		21,418
Maximum Income		34,929
Adjustment Rate		0.0356

 

Federal Tax Tab

 

Enter in Section 1 of the Government Tables option.

 

Fields	Quebec	All Provinces
Basic Deduction	13,808	13,808
Basix Credit Rate	0.1500	0.1500
(Calcul T1) Constant	0.1650

 

Tax Rate and Federal Income Thresholds for 2021

Enter in Section 2 of the Government Tables option.

 

Provinces	Amount	Rate R	Constant K
All Provinces	0	0.1500	0
	49,020	0.2050	2696
	98,040	0.2600	8,088
	151,978	0.2900	12,648
	216,511	0.3300	21,308

 

Employment Tax Credit

Enter in Section 3 of the Government Tables option.

 

Fields	Quebec	All Provinces
Rate	0.15	0.15
Maximum	1,257	1,257

 

Basic Deduction Adjustment

Enter in Section 4 of the Government Tables option.

 

Fields	Amount
Adjustment Amount	1,387
Minimum Income	151,978
Maximum Income	216,511

 

Please remember that section 4 was added in 2020 with the 3.04.43.35 and 3.05.24.35 updates

 

Do not forget to save the data before closing the option.

 

For additional information or explanation concerning the required changes to be made in maestro*, please contact Customer Support at 1-877-833-1897.