Business -> Payroll Tax Deductions and Automobile Taxable Benefits

Calculating Payroll Tax Deductions and Automobile Taxable Benefits

Payroll Source Deduction and Taxable Benefit Calculators

Canada Revenue Agency (CRA) has a Payroll Deductions Online Calculator (PDOC) which is free of charge. Use this to check your own payroll tax deductions. If your payroll deductions don't seem correct, make sure your employer has up-to-date TD1 forms for you, as this is how they determine your source deductions.

CRA also has the Automobile Benefits Online Calculator, which calculates the appropriate automobile taxable benefit amount to be included in an employee's income when the employee utilizes a vehicle leased or owned by the employer.

If you prefer to calculate deductions manually, you can get instructions and the payroll deduction tables from the CRA web page on Calculating deductions.

Detailed Income Tax & RRSP Savings Calculators for all provinces and territories. Input your annual income from different sources. Your annual federal & provincial/territorial taxes, CPP and EI premiums will be calculated for you. Input an RRSP deduction amount to see how much tax can be saved. The tax calculators are a very useful tax planning tool. They work for both the current and previous tax years.

Tax Tip: Make sure your TD1 forms are up-to-date so that your tax withholdings are correct!

CRA Payroll Mailing List, Guides and Resources

Because payroll deduction rates often change semi-annually, you should get on the CRA electronic mailing list service for payroll deductions, so you can keep up to date when new rates are available.

For CRA information on taxable benefits, see T4130 Employers' Guide - Taxable Benefits and Allowances, as well as the Benefits Chart, which shows the types of benefits for which CPP and EI must be deducted, and which benefits require GST or HST to be included in the taxable benefit amount. It also shows the appropriate codes to go on a T4 slip.

More CRA Resources:

Payroll Deductions Online Calculator, payroll tables, TD1s, and more

CPP/EI Explained - information for workers and employers

Quebec Payroll Taxes

To calculate payroll taxes for Quebec, use WEBRAS from Revenu Quebec.

See also Source deductions and employer contributions on Revenu Quebec website.

TaxTips.ca Resources

Which provincial or territorial tax tables should I use for my employees?

Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Employment Insurance (EI)

TD1 Forms Determine Your Tax Withholdings

Revised: November 19, 2024