Payroll Modifications Effective January 1, 2020

 

Varennes, December 2019

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 2019 payroll but before processing your first 2020 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 are from version 3.04 of maestro* and may differ from your current version.
  • 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 2020 payroll periods

 

REMINDER: When you close the last 2019 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 information for the year, the committee and the year’s start date.
  3. Click the Apply icon to view the pay periods in the grid.
  4. Click the Save icon.
  5. Click the Quit icon.

 

 

The new periods will only be visible in the selections when the active payroll year is 2020.

 

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 2020
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)

0.0570

 

QPP - Basic Exempt. ($) (Employee section)
Basic general exemption

3500

 

QPP - Annual Max. ($) (Employee section)
Maximal employee contribution

3,146.40

 

QPP - Factor/Rate (Employer section)

1.00

 

Parental Insurance - Factor/Rate (Employee section)

0.00494

 

Parental Insurance - Annual Max. ($) (Employee section)

387.79

 

Parental Insurance - Factor/Rate (Employer section)

0.00692

 

Parental Insurance - Annual Max. ($) (Employer section)

543.22

 

Healthcare Deduction (Employer section)

Between

0.0165 and 0.0426

Between

0.0098 and 0.0195

 

 

New - British Columbia Employer Health Tax

Starting 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 2020.

 

Provinces and Territories

Safety Board

Weekly Maximum ($)

Annual Maximum ($)

Quebec

1,505.56

78,500

Ontario

 

95,400

Alberta

 

98,700

British Columbia

 

87,100

Prince Edward Island

 

55,300

Manitoba

 

127,000

New Brunswick

 

66,200

Nova Scotia

 

62,000

Nunavut

 

 94,500

Saskatchewan

 

88,906

Newfoundland and Labrador

 

66,980

Northwest Territories

 

 94,500

Yukon

 

 90,750

 

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 2020 – (Quebec Only)

 

Enter in Section 3 of the Government Tables option.

 

Fields

Quebec

Insurance Tax Rate

9.00

 

Labour Standards for 2020 – (Quebec Only)

 

Enter in Section 4 of the Government Tables option.

 

Fields

Quebec

Max. Labour

78,500

Rate

0.07

 

 

WARNING! The maximum salary for the Normes du travail (CNT, now the CNESST) should not be modified before the end of the T4 and RL-1 production because the Remuneration subject to the contribution amount (displayed on the Employer’s Summary) is taken into account when calculating the maximum salary.

 

Federal Rates Tab

 

Federal Rates for 2020
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 $53 100 to $54 200.

To know the annual and proportional rates of your reduction premiums for 2020, consult the following link: EI Premium Reduction Program

Enhancement to the Canada Pension Plan (CPP)

Starting January 1, 2019, 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

0.0120

0.0158

Employment Insurance - Annual Max.($) (Employee section)
Employee Contributions Max. Yearly Amount

650.40

856.36

Employment Insurance - Factor/Rate (Employer section)

1.40

1.40

Pension Plan - Factor/Rate (Employee section)

 

0.0525

Pension Plan - Basic Exempt.($) (Employee section)

 

3500

Pension Plan - Annual Max.($) (Employee section)

 

2,898.00

Pension Plan - Factor/Rate (Employer section)

 

1.0

 

Provincial Tax Tab

 

Provincial Tax for 2020

 

Enter in Section 1 of the Government Tables option.

 

ClosedQuebec

ClosedOntario

ClosedAlberta

ClosedBritish Columbia

ClosedPrince Edward Island

ClosedManitoba

ClosedNew Brunswick

ClosedNova Scotia

ClosedNunavut

ClosedSaskatchewan

ClosedNewfoundland and Labrador

ClosedNorthwest Territories

ClosedYukon

 
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

44,545

89,080

108,390

0

2,227

5,790

7,687

15.00

20.00

24.00

25.75

Ontario

0

44,740

88,482

150,000

220,000

0

1,834

3,633

5,133

7,333

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

41,725

83,451

95,812

116,344  

157,748

220,000

0

1,102

3,438

5,153

7,957

11,270

27,550

5.06

7.70

10.50

12.29

14.70

16.80

24.20

Prince Edward Island

0

31,984

63,969

0

1,279

3,134

9.80

13.80

16.70

Manitoba

0

33,389

72,164

0

651

4,007

10.80

12.75

17.40

New Brunswick

0

43,401

86,803

141,122

160,776 

0

2,231

3,706

5,569

9,524

9.68

14.82

16.52

17.84

20.30

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

46,277

92,555

150,473

0

1,388

3,239

7,001

4.00

7.00

9.00

11.50

Saskatchewan

0

45,225

129,214

0

905

3,489

10.50

12.50

14.50

Newfoundland and Labrador

0

37,929

75,858

135,432

189,604  

0

2,200

3,186

5,218

7,114

8.70

14.50

15.80

17.30

18.30

Northwest Territories

0

43,957

87,916

142,932

0

1,187

4,352

6,996

5.90

8.60

12.20

14.05

Yukon

0

48,535

97,069

150,473

500,000

0

1,262

3,106

5,965

16,965

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

 

Temporary Contribution for Deficit Reduction – Newfoundland and Labrador

The temporary contribution for deficit reduction for the province of Newfoundland and Labrador was in effect from 2016 to 2019. Thus, the V2 factor has been removed from the T2 calculation for the province of Newfoundland and Labrador for 2020.

 

Completely empty the Section 3 of the Government Tables option.

 

Line

Taxable Income

Contribution

Contribution %

Amount ($)

Constant

Rate

Maximum

1

        

2

        

3

        

4

        

5

        

6

        

7

        

8

        

9

        

10

        

11

        

12

        

13

        

14

        

15

        

16

        

17

        

18

        

 

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 $249, however, you will need to enter $498 because maestro* must calculate $249 x 2.

This note only applies to Ontario.

498

476

Amount for Eligible Dependents

460

 

Minimum Income

 

21,185

Maximum Income

 

34,556

Adjustment Rate

 

0.0356

 

Federal Tax Tab

 

 

Enter in Section 1 of the Government Tables option.

 

Fields

Quebec

All Provinces

Basic Deduction

13,229

13,229

Basix Credit Rate

0.1500

0.1500

(Calcul T1) Constant

0.1650

 

 

Tax Rate and Federal Income Thresholds for 2020

 

Enter in Section 2 of the Government Tables option.

 

Provinces

Amount

Rate R

Constant K

All Provinces

0

0.1500

0

 

48,535

0.2050

2669

 

97,069

0.2600

8,008

 

150,473

0.2900

12,522

 

214,368

0.3300

21,097

 

Employment Tax Credit Section

 

Enter in Section 3 of the Government Tables option.

 

Fields

Quebec

All Provinces

Rate

0.15

0.15

Maximum

1,245

1,245

 

 

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.

 

Last modification: November 12, 2024