Payroll Updates for 2024
Personal Tax Credits and CPP Contributions
The new year brings important changes around taxes, including changes around CPP contribution rates for 2024 and a few action items you may need to take for your tax withholdings.
New TD1 Personal Tax Credit Forms
If you wish to claim more than the basic personal tax credit amount because you are eligible to claim additional tax credits (reducing the income tax withholding on your pay), please complete new 2024 TD1 and TD1BC forms.
A new form is required for each year. There will be no rollover credits from 2023.
TD1 forms:
Note: It is your responsibility to provide the Payroll Department with new TD1 forms no later than seven days after a change in your eligible tax credit amounts.
If you claimed the basic tax credit amount in 2023 and there are no changes to your tax credit amounts, no action is required on your part.
If you previously claimed more than the basic exemption in 2023, these amounts have been reduced to the basic exemption amounts for 2024. If you are still eligible for and wish to claim additional tax credits, you must submit new forms.
If you previously claimed zero exemptions, you will continue to be fully taxed on all earnings with no exemption in 2024. If you are now eligible for and wish to claim the basic tax credit, and/or additional credits, you must submit new forms.
If you need to submit new forms, please email HR the signed and completed forms as soon as possible.
Change of Address
If you have moved, please email HR, with your new address prior to January 12.
Reminder: For Your First Pay of 2024
If you reached the maximum annual contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI) before December 31, 2023, these deductions will commence again on your first pay in 2024. The restarting of these deductions will result in a reduction of your net (take-home) pay.
Second Canada Pension Plan (CPP) Enhancement Contribution
As a part of the CPP enhancement, a second additional range of earnings will be phased in between 2024 and 2025.
In 2024, this additional range of earnings will be between the Year’s Maximum Pensionable Earnings (YMPE $68,500) and a new higher limit known as the Year’s Additional Maximum Pensionable Earnings (YAMPE $73,200). Employees who earn more than $68,500 per annum will continue with a second CPP contribution at a rate of 4% until they reach the YAMPE of $73,200.
For example, an employee who earns $78,000 annually will contribute to CPP at a rate of 5.95% up to the YMPE of $68,500 and will continue to contribute to CPP at 4% up to the YAMPE. The maximum second CPP contribution (for 2024) will be $188 ($73,200–$68,500 = $4,700 x 4% = $188).