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Payroll Modifications Effective January 1, 2023

 

Version in date of January 10, 2023

Elements that have been modified since the December 21^st version have been highlighted in pink:

• the Nova Scotia basic deduction amount, and
• the employment tax credit for the province of Quebec.

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 2022 payroll but before processing your first 2023 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 is your responsibility to validate whether you 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 2023 Payroll Periods
  • Configuration of the Payroll Periods
• Modifications to Quebec Payroll
  • Define the AECQ Contribution Date (Applicable to CCQ-Regulated Employees)
• Modifications to Government Tables
  • Provincial Rates Tab
    • Provincial Rates for 2023
    • Safety Board Amount / Annual Max.
    • W/C – CSST Provision (Quebec only)
    • Insurance Tax Rate for 2023 – (Quebec Only)
    • Labour Standards for 2023 – (Quebec Only)
  • Federal Rates Tab
    • Federal Rates for 2023
  • Provincial Tax Tab
    • Provincial Tax for 2023
    • 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 2023
    • Employment Tax Credit
    • Basic Deduction Adjustment

 

Definition of the 2023 Payroll Periods

REMINDER: When you close the last 2022 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 number of pay periods that apply to the committee for the new year.

To determine the number of pay periods for a committee, we have to take into account: the last paid day of the previous taxation year, the frequence at which employees in this committee get paid, and the last day worked, for which the payment date belongs to the same calendar year. Indeed, it is the paycheque date that determines to which taxation year the payroll belongs to (whether the payment is done via cheque or direct deposit).

5. Enter the start of the year date, end of the year date, and the number of periods.
6. Click the Apply icon to view the pay periods in the grid.
7. Click the Save icon.
8. Repeat steps 1 to 7 until all pay periods are set up for all committees.

Once these new pay periods created for the first committee, maestro* will offer to automatically create the same pay periods for all other committees for which identical periods were created the previous year.

9. Click the Quit.

 

The new periods will only be visible in the selections when the active payroll year is 2023.

 

Modifications to Quebec Payroll

Define the AECQ Contribution Date (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, 2023, in the Define Committees option, as shown below, and save the modification.

 

Modifications to Government Tables

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

1. In the Government Tables window, 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 2023

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 2023, this enhancement is represented by an additional contribution rate of 1%. This rate will allow maestro* to calculate the part of the contribution that will become a tax deductible amount.

A field to this effect, titled QPP Additional Rate has been added in maestro*. Also, the suggested government table update, presented in the following table, takes into account the changes made to the QPP and this new field.

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

To complete in Section 1 of the Government Tables option.

 

Fields	Quebec	Ontario
QPP - Factor/Rate (Employee section)	0.0640
QPP - Basic Exempt. ($) (Employee section) Basic general exemption	3,500
QPP - Annual Max. ($) (Employee section) Maximal employee contribution	4,038.40
QPP - Factor/Rate (Employer section)	1.00
QPP Additional Rate	0.01
Parental Insurance - Factor/Rate (Employee section)	0.00494
Parental Insurance - Annual Max. ($) (Employee section)	449.54
Parental Insurance - Factor/Rate (Employer section)	0.00692
Parental Insurance - Annual Max. ($) (Employer section)	629.72
Healthcare Deduction (Employer section)	Between 0.0165 and 0.0426	Between 0.0098 and 0.0195

 

British Columbia Employer Health Tax Since January 1, 2019, British Columbia employers with remuneration higher than $500,000 must register for the 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, then save.

You MUST enter the effective start date to ensure no previous values get overwritten. Furthermore, to view the change made to the Define WC/CSST amount, modify the computer date to one in 2023.

 

Provinces and Territories	Safety Board
	Weekly Maximum ($)	Annual Maximum ($)
Quebec	1,745.30	91,000
Ontario		110,000
Alberta		102,100
British Columbia		112,800
Prince Edward Island		65,000
Manitoba		153,380
New Brunswick		74,800
Nova Scotia		69,800
Nunavut		107,400
Saskatchewan		96,945
Newfoundland and Labrador		72,870
Northwest Territories		107,400
Yukon		98,093

 

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 2023 – (Quebec Only)

Enter in Section 3 - Other of the Government Tables option.

 

Fields	Quebec
Insurance Tax Rate	9.00

 

Labour Standards for 2023 – (Quebec Only)

Enter in Section 4 of the Government Tables option.

 

Fields	Quebec
Max. Labour	91,000
Rate Represents the contribution rate for the Commission des normes du travail (CNT, now CNESST) financing	0.06

 

Federal Rates Tab

Federal Rates for 2023

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 $60,300 to $61,500.

To know the annual and proportional rates of your reduction premiums for 2023, consult the following link: EI Premium Reduction Program

Enhancement to the Canada Pension Plan (CPP)

Since January 1, 2019, the contribution rate for the Canada Pension Plan (CPP) was enhanced to increase Canadians’ retirement revenue. The enhancement will be carried out in two phases, over several years.

In 2023, this enhancement is represented by the addition of an additional contribution rate of 1%. This rate will allow maestro* to calculate the part of the contribution that will become a tax deductible amount.

A field to this effect, titled CPP Additional Rate has been added in maestro*. Also, the suggested government table update, presented in the following table, takes into account the changes made to the CPP and this new field.

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	0.0127	0.0163
Employment Insurance - Annual Max.($) (Employee section) Employee Contributions Max. Yearly Amount	781.05	1,002.45
Employment Insurance - Factor/Rate (Employer section)	1.40	1.40
Pension Plan - Factor/Rate (Employee section)		0.0595
Pension Plan - Basic Exempt.($) (Employee section)		3,500
Pension Plan - Annual Max.($) (Employee section)		3,754.45
Pension Plan - Factor/Rate (Employer section)		1.0
CPP Additional Rate		0.01

 

Provincial Tax Tab

 

Provincial Tax for 2023

Enter in Section 1 of the Government Tables option.

 

Quebec Fields Quebec Mode Quebec Basic Deduction 17,183 Constant A 0.0600 Maximum B 1,315 Credit Rate 0.15 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2	Ontario Fields Ontario Mode Ontario Basic Deduction 11,865 Constant A   Maximum B   Credit Rate 0.0505 Surtax - Level 1 5,315 Rate - Surtax 1 0.200 Surtax - Level 2 6,802 Rate - Surtax 2 0.360
Alberta Fields Alberta Mode Alberta Basic Deduction 21,003 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 11,981 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 12,000 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 10,855 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 12,458 Constant A   Maximum B   Credit Rate 0.0940 Surtax - Level 1   Rate - Surtax 1   Surtax - Level 2   Rate - Surtax 2	Nova Scotia Fields Nova Scotia Mode N.S. Basic Deduction 8 ,481 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 17,925 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 17,661 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 10,382 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 16,593 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 15,000 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 49,275 98,540 119,910	0 2,463 6,405 8,503	15.00 20.00 24.00 25.75
Ontario	0 49,231 98,463 150,000 220,000	0 2,018 3,998 5,498 7,698	5.05 9.15 11.16 12.16 13.16
Alberta	0 142,292 170,751 227,668 341,502	0 2,846 4,553 6,830 10,245	10.00 12.00 13.00 14.00 15.00
British Columbia	0 45,654 91,310 104,835 127,299 172,602 240,716	0 1,205 3,762 5,638 8,706 12,331 21,238	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 36,842 79,625	0 718 4,421	10.80 12.75 17.40
New Brunswick	0 47,715 95,431 176,756	0 2,195 4,104 10,290	9.40 14.00 16.00 19.50
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 50,877 101,754 165,429	0 1,526 3,561 7,697	4.00 7.00 9.00 11.50
Saskatchewan	0 49,720 142,058	0 994 3,836	10.50 12.50 14.50
Newfoundland and Labrador	0 41,457 82,913 148,027 207,239 264,750 529,500 1,059,000	0 2,405 3,482 6,443 10,588 13,235 15,883 21,178	8.70 14.50 15.80 17.80 19.80 20.80 21.30 21.80
Northwest Territories	0 48,326 96,655 157,139	0 1,305 4,784 7,691	5.90 8.60 12.20 14.05
Yukon	0 53,359 106,717 165,430 500,000	0 1,387 3,415 6,558 17,558	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 $274, however, you will need to enter $548 because maestro* must calculate $274 x 2. This note only applies to Ontario.	548	521
Amount for Eligible Dependents	506
Minimum Income		23,179
Maximum Income		37,814
Adjustment Rate		0.0356

 

Federal Tax Tab

 

Enter in Section 1 of the Government Tables option.

 

Fields	Quebec	All Provinces
Basic Deduction	15,000	15,000
Basix Credit Rate	0.1500	0.1500
(Calcul T1) Constant	0.1650

 

Tax Rate and Federal Income Thresholds for 2023

Enter in Section 2 of the Government Tables option.

 

Provinces	Amount	Rate R	Constant K
All Provinces	0	0.1500	0
	53,359	0.2050	2,935
	106,717	0.2600	8,804
	165,430	0.2900	13,767
	235,675	0.3300	23,194

 

Employment Tax Credit

Enter in Section 3 of the Government Tables option.

 

Fields	Quebec	All Provinces
Rate	0.15	0.15
Maximum	1 ,368	1,368

 

Basic Deduction Adjustment

Enter in Section 4 of the Government Tables option.

 

Fields	Amount
Adjustment Amount	1,479
Minimum Income	165,430
Maximum Income	235,675

 

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 Software Support through the Guide portal.

 

Version in date of January 10, 2023