New Payroll Tables Now Available for January 1, 2008

It's that time of year again....

On January 1, 2008 the Federal Government released it's new tax tables which apply to all payments made for 2008. Only a few minor changes, but necessary to update your payroll software before you prepare your first set of payroll cheques for 2008.

The federal tax rate for the lowest personal income tax bracket is reduced to 15% retroactive to January 1, 2007.

The federal basic personal amount, the spouse or common-law partner amount and the amount for eligible dependant have been increased to $9,600 for the 2008 tax year.

A new non-refundable tax credit, the Canada Employment Credit, is included in the calculation of the payroll deductions tables effective July 1, 2006. The federal Canada Employment Credit has been indexed to $1,019 for 2008.

There is no change to the provincial tax rates for 2008.

Below are some of the highlights from the new tables.

Please note that some software programs require manual updates of these figures, even after downloading the payroll updates they provide.

Basic Federal Personal Exemption	NEW $9,600
Basic Ontario Provincial Personal Exemption (For all Basic Provincial Personal Exemption Rates - click here)	NEW $8,681
CPP Premium Rate (Maximum pensionable earnings under the Canada Pension Plan (CPP) for 2008 will be $44,900 - up from $43,700 in 2007.)	4.95%.
	NEW Maximum deductible: $2,049.30
EI Premium Rate (Reduced to $1.73 for individuals and $2.42 for employers per $100 of insurable earnings)	NEW 1.73%
	NEW Maximum deductible: $ 711.03
For Federal Tax Rates - click here
For Ontario Health Premium Tax Rates - click here

If your company manually calculates payroll taxes, and you require a downloadable version of the 2008 Payroll Tax Tables please contact us.

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