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Canada Revises 2020 Payroll Deductions Formulas

Jan. 14, 2020, 2:45 PM

Canada’s 2020 payroll deductions formulas were revised because of recently announced federal tax changes that are to retroactively take effect Jan. 1, 2020, if passed, the Canada Revenue Agency said Jan. 9.

The formulas were revised to incorporate a new calculation for the federal basic personal amount, which is an annual tax-free income amount, the agency said in the updated 2020 Guide T4127, Payroll Deductions Formulas. Effective starting in 2020, the basic personal amount is to increase each year until it reaches C$15,000 (U.S. $11,385) in 2023, up from C$12,298 (U.S. $9,334.18), Canada’s Department of Finance said in a...

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