Microsoft Dynamics GP

2017 Year-end Update & 2018 Tax Update

Covering GP 2018

Back through GP 2013

Copyright 2017 Microsoft Corporation. All rights reserved.

Microsoft, Microsoft Dynamics, SQL Server, Windows, Windows Server, and Windows Vista are

trademarks of the Microsoft group of companies. FairCom and c-tree Plus are trademarks of FairCom

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Some examples depicted herein are provided for illustration only and are fictitious. No real association

or connection is intended or should be inferred.

December 2017

Copyright

Trademarks

Intellectual property

Warranty disclaimer

Limitation of liability

License agreement

Publication date

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Contents

Introduction ...................................................................................................................................... 1

What’s in this document .......................................................................................................................................... 1

What’s changed ........................................................................................................................................................... 1

Resources ........................................................................................................................................................................ 2

Symbols and conventions ........................................................................................................................................ 3

Checklist steps .............................................................................................................................................................. 5

Chapter 1: Canadian Payroll year-end checklist ................................................................... 5

Supported versions ..................................................................................................................................................... 7

Chapter 2: Preparation and installation .................................................................................. 7

Obtaining a CRW Web Access Code ................................................................................................................... 7

Finding the Software Developer Number and RL-1 Authorization number ...................................... 8

Installing the update .................................................................................................................................................. 8

Installing with UAC activated ............................................................................................................................... 11

Chapter 3: Electronic filing in XML format .......................................................................... 13

Filing the T4/T4A in XML format ........................................................................................................................ 13

Filing the RL-1 in XML format ............................................................................................................................. 14

Filing an amended or cancelled RL-1 in XML format ................................................................................ 14

Chapter 4: Tax updates ............................................................................................................... 15

Pension Plan, Employment Insurance, and Parental Insurance changes .......................................... 15

Federal tax rates and income thresholds ....................................................................................................... 16

Federal personal amounts .................................................................................................................................... 16

Provincial and territorial tax changes .............................................................................................................. 17

Updating basic personal amounts .................................................................................................................... 21

Index factors for 2017 ............................................................................................................................................ 22

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Introduction

This document contains instructions for updating the Canadian Payroll module for

Microsoft Dynamics GP 2018, Microsoft Dynamics GP 2016 R2 Microsoft Dynamics

GP 2015 and Microsoft Dynamics GP 2013 R2 to be compliant with 2016 filing

requirements. This update also includes Round 1 tax updates for 2018 federal,

provincial, and territorial taxes.

These instructions assume that you are already familiar with Microsoft Dynamics GP

Canadian Payroll.

You can find information about year-end procedures in the “Year-End Procedures,”

“T4/R1 Routines,” and “T4A Routines” chapters in the Canadian Payroll

documentation.

Note, however, that the instructions in this document expand on those instructions

and in some cases supersede them.

This introduction contains the following sections:

• What’s in this manual

• What’s changed

• Resources

• Symbols and conventions

What’s in this document

This document contains the following chapters:

Chapter 1, "Canadian Payroll year-end checklist," contains a checklist that you can

use for year-end procedures.

Chapter 2, "Preparation and installation," specifies prerequisites, and provides

installation instructions for the year-end update and tax update.

Chapter 3, "Electronic filing in XML format," contains information that you can use

to prepare T4/T4A slips and RL-1 forms with Canadian Payroll for magnetic media

filing in XML format.

Chapter 4, "Tax updates," describes the federal and provincial or territorial tax

changes for 2016.

The document includes information for Microsoft Dynamics GP 2018, however the

release of year-end changes for the 2018 tax year for GP 2018 will follow the updates

for earlier versions soon.

What’s changed

The 2017 Year-End Update/2018 Tax Update contains changes in the information

that’s submitted to the Canada Revenue Agency (CRA) and Ministère du Revenu du

Québec.

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Tax changes See Chapter 4, “Tax updates,” for a description of 2018 federal, provincial, and

territorial tax changes.

All prior federal, provincial, and territorial tax changes are included in the 2017

Year-End Update/2018 Tax Update.

General application changes The 2017 Year-End Update/2018 Tax Update contains application bug fixes and

functionality updates to comply with regulatory changes.

XML and form changes The T4 and RL-1 XML form have note changed for the 2017 reporting year.

The T4A and RL-1 forms have not changed for the 2017 reporting year.

Installation notes The January 2018 Canadian Payroll Tax Update must be installed on the server and

on each client workstation where Microsoft Dynamics GP is used.

Before installing the update, be sure to complete the following tasks:

All users should exit Microsoft Dynamics GP until the update has been installed on

all workstations.

Close all programs, turn off the screen saver, and back up important data and

programs before continuing with the update.

Save backup copies of your Reports.dic, R7131.dic, F7131.dic, Forms.dic, and

Dynamics.vba files, if these files are present in your installation.

Resources

If you have questions about Canadian Payroll year-end closing procedures and your

Microsoft Business Solutions Partner isn’t available, there are several resources, in

addition to this document, to assist in answering your year-end questions.

2017 year-end information on CustomerSource (https://mbs.microsoft.com/customersource/northamerica/GP/downloads>> 2017

Canadian Payroll Year End Update for Microsoft Dynamics GP)

Look here to find out what year-end maintenance and tax changes are included in

each update and to download the update. All instructions for downloading and

installing the tax updates also will be provided here.

Knowledge Base (https://mbs.microsoft.com/knowledgebase/search.aspx)

Provides you with instant access to the same database that our support engineers

use. You can find answers to common questions, along with technical tips and

performance recommendations.

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eSupport (https://mbs.microsoft.com/support/newstart.aspx)

For support requests that can be handled with e-mail. On average, the response

time is nearly twice as fast as telephone support. That’s a big benefit during the

critical year-end season.

Newsgroups (https://mbs.microsoft.com/customersource/newsgroups)

Start a year-end discussion with other members of the Microsoft customer

community. This database provides you with the opportunity to exchange

information with other customers, which is perfect for providing tips and answers

to year-end questions.

Microsoft Canadian Payroll support team We have a support team focused entirely on providing service and support to our

Canadian Payroll customers. If you have questions, dial toll free 888-GPS-SUPP

(888-477-7877). Enter your 10-digit authorization code, then press 4 for the Payroll

Tax Hotline.

Symbols and conventions

For definitions of unfamiliar terms, see your Canadian Payroll glossary in the

manual or refer to the glossary in Help.

Symbol Description

The light bulb symbol indicates helpful tips, shortcuts and suggestions.

The warning symbol indicates situations you should be especially aware of

when completing tasks.

This manual uses the following conventions to refer to sections, navigation, and

other information.

Convention Description

Creating a batch Italicized type indicates the name of a section or procedure.

File >> Print The (>>) symbol indicates a sequence of actions, such as selecting items from a

menu or toolbar, or pressing buttons in a window. This example directs you to

go to the File menu and choose Print.

TAB or ENTER All capital letters indicate a key or a key sequence.

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Chapter 1: Canadian Payroll year-end checklist

Use the following checklist for Canadian Payroll year-end processing. For detailed

instructions for completing each step, refer to the sections listed in specific steps

and to the instructions in the Canadian Payroll manual or online help.

Checklist steps

Step Description

1. Complete all 2017 pay runs.

2. Note: Any batch with a cheque date of 2018 should be processed after the Year End File

Reset. For example, if the cheque date of your final pay period for 2017 is January 1, 2018,

the 2017 tax tables must be used for that pay run.

3. Complete any necessary 2017 payroll reports.

4. Install the 2017 Canadian Payroll Year-End Update. See Installing the update on page 8

5. Note: Do not restart Microsoft Dynamics GP on any workstation until the update has been

installed on all workstations that run the application.

6. Complete the Year End File Reset.

7. Note: To ensure that all tables are available for resetting, make sure that the Year End File

Reset window is the only window open in Microsoft Dynamics GP.

8. Make a backup of your data titled “Post 2017 Year-End Update.”*

9. Note: The following steps can be done any time after the Year End File Reset has been

completed.

10. Create T4, T4A, and RL-1 statements, and print the T4, T4A, and RL-1 reports.

11. Edit the T4, T4A, and RL-1 records, as necessary. You can print an edit list from the Payroll

Routines - Canada window.

12. Create T4, T4A, and RL-1 Summary records.

*By law, you must be able to reproduce original or amended T4, T4A, and RL-1 slips for a predefined

(agency assigned) number of years after the original filing. To meet this requirement, be sure to keep

backups of all your Canadian Payroll data files, as well as copies of reports, tax forms, and filings.

Canadian Payroll will only allow you to re-create a prior year filing if you save backup copies of the

prior reporting year data.

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Chapter 2: Preparation and installation

This portion of the documentation specifies the requirements for installing the

2017 Year-End Update / 2018 Tax Update.

Information is divided into the following sections:

• Supported versions

• Obtaining a CRW Web Access Code

• Finding the Software Developer Number and RL-1 Authorization number

• Installing the update

• Installing with UAC activated

Supported versions

The 2017 Year-End Update / 2018 Tax Update supports Microsoft Dynamics GP

2018, Microsoft Dynamics GP 2016, Microsoft Dynamics GP 2015, Microsoft

Dynamics GP 2013.

To identify the Microsoft Dynamics GP release you’re using, start the application

and choose Help >> About Microsoft Dynamics GP.

To identify the Canadian Payroll release you’re using, start Microsoft Dynamics GP,

then open the Payroll Control Setup – Canada window (Microsoft Dynamics GP

menu >>Tools >> Setup >> Payroll – Canada >> Control). You should see the

release number in the upper left corner of the window.

If you are using an unsupported release of Microsoft Dynamics GP, you won’t

receive all of the necessary information to complete year-end closing and payroll

tax procedures. This information includes personal amounts, Employment Insurance

(EI), Canadian Pension Plan (CPP), and Quebec Pension Plan (QPP) amounts. To

update the information, install Microsoft Dynamics GP 2013 or higher before

installing this update.

To view a list of product discontinuation dates, visit this site:

https://support.microsoft.com/en-us/lifecycle/search?alpha=Dynamics%20Gp. The

link is also available from the Lifecycle and Upgrade Services blog:

https://community.dynamics.com/gp/b/dynamicsgp/archive/2016/10/04/microsoft-

dynamics-gp-2016-r2-and-year-end-update-lifecycle-and-upgrade-services

Obtaining a CRW Web Access Code

If you plan to use the Internet to submit T4 records, you need to obtain a Web

Access Code from the Canada Revenue Agency (CRA), which preauthorizes you to

submit files using this method. Web Access Codes are valid for one year only, so

you need to get a new one each year.

The Web Access Code consists of six characters: two letters, and four numbers. The

code is case sensitive which means that you must enter it exactly as it appears on

your personalized T4 Summary form. If you do not enter the code correctly, you will

not be able to access the secure areas of the CRA’s T4 Internet File Transfer site.

For information, visit the following CRA page:

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http://www.cra-arc.gc.ca/eservices/rf/cd-eng.html

Canadian Payroll for Microsoft Dynamics GP has the ability to generate the XML file

required for T4 Internet File Transfer, but you are responsible for obtaining the

access code and actually submitting the file to the CRA.

Finding the Software Developer Number and RL-1 Authorization

number

If you plan to use the Internet to submit RL-1 records, you need to obtain the

Software Developer Number and the RL-1 authorization number. Both numbers

change every year.

For 2018, we have obtained the Software Developer Authorization Number before

the tax updates, so we will default it in the Payroll Electronic Transfer R1 window

with: RQ-16-01-130. In addition, we have also obtained the RL-1 Authorization

number before the tax updates, so we will default it in the Payroll T4/R1 Print

window with: FS1601082.

Both numbers can be found with the year-end update at CustomerSource

(https://mbs.microsoft.com/customersource/northamerica/GP/downloads).

You also can see XML and form changes on page 2 for RL-1 authorization number

and the steps for entering it.

Installing the update

The update must be installed on each client workstation where Microsoft Dynamics

GP is used.

When installing the update, be sure to complete the following tasks:

All users should exit Microsoft Dynamics GP until the update has been installed on

all workstations.

Close all programs, turn off the screen saver, and back up important data and

programs before continuing with the update.

Save backup copies of your Reports.dic, R7131.dic, F7131.dic, Forms.dic, and

Dynamics.vba files, if these files are present in your installation.

You must be using a supported version of Canadian Payroll. The 2017 Year-End

Update / 2018 Tax Update supports versions Microsoft Dynamics GP from GP 2018

through GP 2013.

To install the update: 1. Download the update from CustomerSource:

https://mbs.microsoft.com/customersource/northamerica/GP/downloads

Language Microsoft Dynamics

GP 2018

Microsoft Dynamics

GP 2016

Microsoft Dynamics

GP 2015

Microsoft Dynamics

GP 2013

English Coming in January 2018. MicrosoftDynamicsGP16-

KB4056559-ENU.msp

MicrosoftDynamicsGP14-

KB4056558-ENU.msp

MicrosoftDynamicsGP12-

KB4056557-ENU.msp

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Language Microsoft Dynamics

GP 2018

Microsoft Dynamics

GP 2016

Microsoft Dynamics

GP 2015

Microsoft Dynamics

GP 2013

French Coming in January 2018. MicrosoftDynamicsGP16-

KB4046342-FRCA.msp

MicrosoftDynamicsGP14-

KB4046339-FRCA.msp

MicrosoftDynamicsGP12-

KB4046336-FRCA.msp

Save the .msp file to a folder on the local disk drive of the server workstation

that runs Microsoft Dynamics GP.

The year-end update file also includes all prior Microsoft Dynamics GP 2015

updates or Microsoft Dynamics GP 2016 R2 updates. A document describing the

service pack changes is available from CustomerSource.

2. Double-click the file that you just downloaded. Progress windows appear as

space requirements are verified and files are installed.

3. A message may appear, asking if you want to restart now or later. Click Yes to

restart now, you will need to run the update file again after restarting.

4. After the installation is finished, manually restart your computer if a message

directed you to do so earlier.

5. Start Microsoft Dynamics GP Utilities.

Microsoft Dynamics GP 2018 Start >> All Programs >> Microsoft Dynamics >> GP 2018 >> GP Utilities

Microsoft Dynamics GP 2016 Start >> All Programs >> Microsoft Dynamics >> GP 2016 >> GP Utilities

Microsoft Dynamics GP 2015 Start >> All Programs >> Microsoft Dynamics >> GP 2015 >> GP Utilities

Microsoft Dynamics GP 2013 Start >> All Programs >> Microsoft Dynamics >> GP 2013 >> GP Utilities

6. In the Welcome to Microsoft Dynamics GP Utilities window, verify your server

name, enter the system administrator user ID and password, and click OK.

7. In the second welcome window, click Next.

8. In the Upgrade Microsoft Dynamics GP window, click Next.

The Server Installation Progress window describes the process as it progresses.

9. In the Upgrade these companies window, click Next. All companies are selected

to be updated.

10. In the Confirmation window, click Finish.

Microsoft Dynamics GP Utilities updates your company databases. This process

may take several minutes to complete. The Server Installation Progress window

describes the process as it progresses.

11. After the update process is finished and is successful, the Additional Tasks

window opens.

If the update process wasn’t successful, the Update Company Tables window

opens. To contact Microsoft Dynamics GP Technical Support, see Resources on

page 2 for more information.

12. In the Additional Tasks window, choose Update modified forms and reports

and click Process. The Locate Launch File window appears.

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13. Select the location of the launch file (Dynamics.set). In most cases you can

accept the default location. Click Next. The Update Modified Forms and

Reports window appears.

14. Mark the check box next to Microsoft Dynamics GP and any additional

components listed.

15. When you mark a component’s check box, a Product Details window may

appear, allowing you to select the location of the component’s original code

dictionary. You also can open the Product Details window by selecting a

component and clicking Details.

When you apply an update (.msp file), any dictionaries whose compatibility ID

has changed are backed up to a folder named “Version <Version Number>

Backup”. This folder is located in the same folder as Dynamics.exe. The

<Version Number> value is the version you were using before applying the

update.

If the original dictionary exists in the backup folder, Microsoft Dynamics GP

Utilities will automatically display its location in the Product Details window,

and you can click OK to accept the location. If the location is missing or

incorrect, click the file folder icon and browse to the appropriate location.

16. When you have finished selecting components, click Update. A Report Update

Progress window displays the status of the update. When the process finishes,

click Close.

Log files containing detailed information are saved in the \Data folder. For each

component, a report named “Update<Version_Name>.log is generated. An

update summary named “Update<Verison>.txt is also generated.

17. In the Modified Forms and Reports window, click Next. The Additional Tasks

window opens where you can start Microsoft Dynamics GP or exit Microsoft

Dynamics GP Utilities.

18. We recommend that you start Microsoft Dynamics GP and review all your

modified forms and reports to verify whether they were updated correctly.

19. After the update to tables is completed, you can set up Automated Client

Update to update all client workstations. For information about setting up the

automatic updates, refer to your System Administrator manual.

To install the update on an operating system with User Account Control (UAC)

activated, see installing with UAC activated.

20. To verify that you’ve installed the latest year-end update and tax update, check

the Last Year-End Update field in the Payroll Reset Files – Canada window

(Microsoft Dynamics GP menu >> Tools >> Routines >> Payroll – Canada >>

Year End File Reset). It should be 12/17/2017 or later.

For the tax update, check the Last Tax Update field in the Payroll Control Setup

– Canada window (Microsoft Dynamics GP menu >> Tools >> Setup >> Payroll

– Canada >> Control). It should be 12/15/2017 or later.

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Installing with UAC activated

User Account Control (UAC) is an enhanced security feature in Windows Vista,

Windows 7, and Windows Server 2008. UAC is activated by default. Before

performing actions that could affect your computer’s operation, such as installing

software updates, UAC asks for permission. To install the update on a client

computer when UAC is active, copy the .msp file to each client workstation, then

use one of the following methods:

• Start Microsoft Dynamics GP as a user that has administrative privileges on the

local computer. (To do this, right-click on the Microsoft Dynamics GP shortcut

and choose Run as administrator.) Double-click the .msp file to install it.

• Start the Command Prompt (located in the Accessories group) as a user that

has administrative privileges on the local computer. (To do this, right-click on

the Command Prompt shortcut and select Run as administrator.) Set the

current directory to the location where you copied the .msp file.

For Microsoft Dynamics GP 2016 (English), enter the following command.

Msiexec /p MicrosoftDynamicsGP16-KB4056559-ENU.msp /l*v C:\MSPErrorlog.txt

For Microsoft Dynamics GP 2016 (French), enter the following command.

Msiexec /p MicrosoftDynamicsGP16-KB4046342-FRCA.msp /l*v C:\MSPErrorlog.txt

For Microsoft Dynamics GP 2015 (English), enter the following command.

Msiexec /p MicrosoftDynamicsGP14-KB4056558-ENU.msp /l*v C:\MSPErrorlog.txt

For Microsoft Dynamics GP 2015 (French), enter the following command.

Msiexec /p MicrosoftDynamicsGP14-KB4046339-FRCA.msp /l*v C:\MSPErrorlog.txt

For Microsoft Dynamics GP 2013 (English), enter the following command.

Msiexec /p MicrosoftDynamicsGP12-KB4056557-ENU.msp /l*v C:\MSPErrorlog.txt

For Microsoft Dynamics GP 2013 (French), enter the following command.

Msiexec /p MicrosoftDynamicsGP12-KB4046336-FRCA.msp /l*v C:\MSPErrorlog.txt

If you want the user to install updates and service packs without having

administrative privileges on the local computer, you can change permissions for the

folder where Microsoft Dynamics GP is installed. Be aware that doing this makes

your computer less secure.

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Chapter 3: Electronic filing in XML format

Canadian Payroll can generate electronic files in the XML format. You are

responsible for submitting the file to the CRA or Revenue Quebec using one of the

supported media types (diskettes, CD-ROMs, or DVD-ROMs) or over the Internet (if

you have under 5 Mb of data to file).

You don’t need to have any special knowledge of XML to generate an XML

electronic file using Canadian Payroll.

Information is divided into the following sections:

• Filing the T4/T4A in XML format

• Filing the RL-1 in XML format

• Filing an amended or cancelled RL-1 in XML format

Filing the T4/T4A in XML format

The T4 slip and the T4A report have not changed for the 2017 tax year. Changes

have been made to the T4 and T4A XML files for the 2016 tax year.

You can use Canadian Payroll to generate the T4 and T4A slips in XML files that you

are responsible for submitting to the CRA.

Data validation By using the XML format, the CRA is able to validate the file as soon as you submit

it and alert you to any errors or omissions in the file. To help you submit an error-

free file, Canadian Payroll includes several features to validate your data prior to

submission.

Verification report You can print the T4 Error Report or T4A Error Report to verify

the data in your XML file before you submit it to the CRA. The report will identify

and describe any errors. You must resolve all the errors before you can generate

the T4 and T4A XML files.

Data entry validation As you enter data during the tax year, entries throughout

Canadian Payroll that will be reflected in electronic files will be verified, and

messages will advise you of any non-valid entries. T4 and T4A information is drawn

from the following locations in Microsoft Dynamics GP.

Type of data Source

Employer information Payroll T4 Summary Edit – Canada and Payroll T4A Summary Edit – Canada

windows

Employee information Payroll T4 Edit – Canada and Payroll T4A Edit - Canada windows

Withholding amounts Cumulative totals, gathered during the payroll process, which are displayed on

the Payroll T4 Edit – Canada and Payroll T4A Edit - Canada windows

Transmitter information Payroll Electronic Transfer T4/T4A windows

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Filing the RL-1 in XML format

Before you use the Internet to submit RL-1 records, you need an RL-1 Authorization

number. The RL-1 Authorization number and the Software Developer Number can

be found with the year-end update at CustomerSource

(https://mbs.microsoft.com/customersource/northamerica/GP/downloads). Both

numbers change every year.

Data validation features By using the XML format, Revenue Quebec will validate the file as soon as you

submit it and alert you to any errors or omissions in the file. To help you submit an

error-free file, Canadian Payroll includes several features to validate your data prior

to submission.

Verification report You can print the RL-1 Error Report to verify the data in your

file before you submit it to Revenue Quebec. The report will identify and describe

any errors. You must resolve all the errors before you can generate the RL-1 files.

Data entry validation As you enter data during the tax year, entries throughout

Canadian Payroll that will be reflected in electronic files will be verified, and

messages will advise you of any non-valid entries. RL-1 information is drawn from

the following locations in Microsoft Dynamics GP.

Type of data Source

Employer information Payroll R1 Summary Edit - Canada window

Employee information Payroll R1 Edit - Canada window

Withholding amount Cumulative totals, gathered during payroll process, which are displayed on

the Payroll R1 Edit - Canada window

Transmitter information Payroll Electronic Transfer R1 window

Filing an amended or cancelled RL-1 in XML format

If changes are needed after you have submitted the RL-1 XML files to Revenue

Quebec, you can use Canadian Payroll to generate amended or canceled files that

you can then submit to Revenue Quebec.

You use the Payroll R1 Edit window to make changes to RL records. You use the

Payroll Electronic Transfer R1 window to generate the amended or canceled files.

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Chapter 4: Tax updates

This chapter lists changes to federal, provincial, and territorial tax rates for 2018. For

detailed information about taxes, refer to the Canada Revenue Agency Web site at

www.cra-arc.gc.ca and Revenue Quebec’s Web site at www.revenu.gouv.qc.ca.

Information is divided into the following sections:

• Pension Plan, Employment Insurance, and Parental Insurance changes

• Federal tax rates and income thresholds

• Federal personal amounts

• Provincial and territorial tax changes

• Updating basic personal amounts

• Index factors for 2017

Pension Plan, Employment Insurance, and Parental Insurance

changes

CPP Contribution rates for both employers and employees has changed for 2018 and

remains 4.95%. The following changes are in effect for CPP for 2018:

• The maximum pensionable earnings amount will be updated to $55,900, from

$55,300.

• The basic exemption remains unchanged at $3,500.

• The maximum contribution amount for the year increases to $2,593.80, from

$2,564.10.

EI for non-Quebec employees • The EI Maximum Annual Insurable Earnings amount increases to $51,700, from

$51,300.

• The EI premium amount decreases to 1.66% from 1.63%. The EI maximum

annual premium amount decreases to $858.22 from $836.19.

• The EI Employer Premium Rate amount will change to 2.282%. The employer EI

premium is set using the Employer EI Factor field in the Payroll Employer

Number Setup – Canada window (Tools >> Setup >> Payroll-Canada >>

Employer). This factor must be set to 1.4 to meet the official EI Employer

Premium.

EI for Quebec employees • The EI maximum annual insurable earnings amount increases to $51,700, from

$51,300.

• The EI (Quebec) Premium Rate amount decreases to 1.30%, from 1.27%.

• The maximum annual premium amount decreases to $672.10, from $651.51.

• The EI Employer (Quebec) Premium Rate amount will increase to 1.778%, from

2.128%. The employer EI premium is set using the Employer EI Factor field in

the Payroll Employer Number Setup – Canada window (Tools > Setup > Payroll-

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Canada > Employer). This field must be set to 1.4 to meet the official EI

Employer Premium.

QPIP • The QPIP Maximum Annual Insurable Earnings amount increases to $74,000,

from $72,500.

• The Premium Rate amount is unchanged at 0.548%.

• The Max Premium amount increases to $405.52 from $397.30.

• The Employer Premium Rate is unchanged at 0.767%. The maximum employer

amount will change to $567.58 from $556.08.

Federal tax rates and income thresholds

Effective January 1, 2018 the federal tax rate is unchanged. The federal index factor

is 1.017. The income thresholds are revised as follows.

Federal personal amounts

Federal personal amounts have been increased by fixed amounts as shown in the

following table.

The Basic Personal amount is updated to $11,809 (formerly $11,635).

The Spouse Common Law Partner amount increases by the index factor to $11,809

(formerly $11,635), if the original amount was not zero.

The Eligible Dependent amount increases by the index factor to $11,809 (formerly

$11,635), if the original amount was not zero.

Canada Employment Credit

The Canada Employment credit has been increased to $1,195 at the lowest rate of

15.0%. The employment credit has been updated so that the Canada employment

credit (factor K4) is the lesser of:

• 0.15 X A; or

• 0.15 X $1,178

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Provincial and territorial tax changes

The following provinces and territories have tax changes for 2018.

The figures in the following tables are those supplied by the relevant revenue

agencies. The actual figures calculated by Canadian Payroll may differ slightly due to

rounding. This issue is recognized by the CRA and the differences will not subject you

to penalties for over- or under-withholding.

Alberta • The Alberta basic personal amount is increased by the index factor, usually

revised to $18,915 (formerly $18,690).

• The Alberta spouse or common-law partner amount is increased by the index

factor, usually revised to $18,915 (formerly $18,690).

British Columbia • The British Columbia basic personal amount increases by the index factor to

$10,412 (formerly $10,208).

• The British Columbia spouse or common-law partner amount (and eligible

dependent) increases by the index factor, usually to $8,740 (formerly $8,586).

Manitoba • The Manitoba Basic Personal amount increases by the index factor to $9,382

(formerly $9,271).

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• The Manitoba Spouse or common-law partner amount increases by the index

factor to $9,382 (formerly $9,271).

New Brunswick • The New Brunswick Basic Personal amount increases by the index factor and is

usually revised to $10,043 (formerly $9,895).

• The New Brunswick Spouse Common Law Partner amount increases by the

index factor and is usually revised to $8,402 (formerly $8,286).

Newfoundland and Labrador • The Newfoundland Basic Personal amount increases by the index factor and is

updated to $9,247 (formerly $8,978).

• The Newfoundland Spouse Common Law Partner amount increases by the

index factor and is updated to $7,336 (formerly $7,192), if the original amount

wasn't zero.

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Northwest Territories • The Northwest Territories basic personal amount increases by the index factor,

and is revised to $14,492 (formerly $14,278).

• The spouse or common-law partner amount increases by the index factor and

is revised to $14,492 (formerly $14,278), if the original amount wasn't zero.

Nova Scotia • The Nova Scotia basic personal remains unchanged at $8,481.

• The spouse or common-law partner amount is also unchanged and remains

$8,481.

Nunavut • The Nunavut basic personal amount increases by the index factor and is usually

revised to $13,325 (formerly $13,128).

• The spouse or common-law partner amount increases by the index factor and

is usually revised to $13,128 (formerly $12,947), if the original amount was not

zero.

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Ontario • The Ontario Basic Personal amount increases by the index factor and is usually

revised to $10,354 (formerly $10,171).

• The Ontario Spouse or Common-law Partner amount increases by the index

factor and is usually revised to $8,636 (formerly $8,500).

Prince Edward Island • There is no index factor in PEI, but the personal amount is changed to $8,160

from $8,000.

Note that in July 2016, the Personal amount was increased to $8,292. This was

the $8,000 personal amount but applied halfway through the year.

Quebec • The TP-1015.3-V Basic amount increases by the index factor and is usually

revised to $15,012 (formerly $11,635). The system rounds this calculation to the

nearest $5.00

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Variable H – Deduction for employment income The deduction for Employment income has been increased to $1,150, formerly

$1,140. Therefore, the deduction is now the lesser of 6% of employment income or

$1,150.

Saskatchewan • The Saskatchewan Basic Personal amount increases by the index factor, so it is

usually revised to $16,065 (formerly $16,065).

• The Spouse Common Law Partner amount increases by the index factor, so it is

usually revised to $16,065 (formerly $16,065).

Yukon • The Yukon basic personal amount increases by the index factor and is usually

revised to $11,809 (formerly $11,635).

• The spouse or common-law partner amount increases by the index factor and

is usually revised to $11,809 (formerly $11635), provided the original amount

was not zero.

Updating basic personal amounts

To update the Basic Personal amounts go to: Tools>> Routines>> Payroll-

Canada>> Year End File Reset

• When the message, “This process will reset YTD totals in the Employee Master

file. Do you want to continue?” displays, click Yes.

• When the message, “Do you want to update Basic Personal Amounts in the

Control Setup File?” displays, click Yes.

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The personal tax credit amounts specified in the P_CPY_Control table will be

updated to:

• The federal Basic Personal amount = $11,809

• Quebec TP-105.3-V Base amount = $11,809

• Alberta basic personal amount = $18,915

• British Columbia basic personal amount = $10,412

• Manitoba Basic Personal amount remains at $9,382

• New Brunswick Basic Personal amount = $10,043

• Newfoundland Basic Personal amount = $9,247

• Northwest Territories basic personal amount = $14,492

• Nova Scotia basic personal amount remains at $8,481

• Nunavut basic personal amount = $13,325

• Ontario Basic Personal amount = $10,354

• Prince Edward Island basic personal amount = $8,160

• Saskatchewan Basic Personal amount remains at $16,065

• Yukon basic personal amount = $11,809

You can view these amounts in the Tax Credits window by going to: Tools >> Setup

>> Payroll-Canada >> Control >> Tax Credits

Index factors for 2017

The following table shows how Index Factors as specified in the Tax Credit

Indexation Factors window (Payroll Reset Files window (Tools>>Routines>>Payroll-

Canada>>Year End File Reset>>Tax Credit Indexation Factors) have been updated.

Note that an amount listed as 1.006 means that the index factor is 6%.

Taxing authority 2018 index

factor

2017 index

factor

Federal 1.015 1.014

Alberta 1.012 1.013

British Columbia 1.020 1.018

Manitoba 1.012 1.015

New Brunswick 1.015 1.014

Newfoundland and Labrador 1.030 1.020

Northwest Territories 1.015 1.014

Nova Scotia 1.000 1.000

Nunavut 1.015 1.014

Ontario 1.018 1.016

Prince Edward Island 1.000 1.000

Quebec 1.0082 1.0074

Saskatchewan 1.014 1.014

Yukon 1.015 1.014