Well, the “no mid-year tax update” euphoria didn’t last too long…
As a result of the June 2014 Ontario election and subsequent budget in July 2014, there are tax changes, affecting Ontario only and only affecting those with incomes > $150,000. The tax changes are effective for September 1, 2014 tax tables, but are retroactive to January 1, 2014.
This update is somewhat optional as you can read below, and organizations need to decide how many of their employees it affects and if the employee(s) affected can authorize manually changing the withholding for the last 4 months of the year to accommodate the change instead of putting a new service pack in now.
If you do not have employees in Ontario, you can ignore this entirely!
Here is some more information, passed on from Microsoft:
Notice to the reader
The September 1, 2014, version of Guide T4127, Payroll Deductions Formulas for Computer Programs, contains adjustments for proposed increases to personal income tax rates tabled in the Ontario budget on July 14, 2014. The proposed changes are retroactive to January 1, 2014, and the revised tables reflect prorated tax rates to allow employers to withhold the correct additional amounts from affected employees between September and the final pay of 2014. The changes to the tables apply to employees who earn more than $150,000 in 2014.
The CRA normally requires employers to withhold and remit income taxes in line with current rates, but because of the complexities and timing of the Ontario budget measures it is recognized that these income tax changes will be implemented on a best-effort basis where practical, in full appreciation of the different payroll systems and administrative […]