The Canadian Employee’s Guide to Payroll Year-End

Without the right tools, tax season can be tough. We’re here to help. We’ve rounded up all the resources you need for a smoother income tax season — from tax slip guides to TD1 info, we’ve got you covered.

For 2022 year-end resources please visit our updated Canadian Payroll Resources Guide

The Canadian Employee’s Guide to Payroll Year-End

Canadian Payroll Resources for Employees

When you have the right resources at the right time, your year-end goes a lot smoother. Every year, we make it our priority to gather all the essential up-to-date information we can find to ensure you have everything you need for an easier year-end.

In this post, you’ll find several sharable resources designed to help you, your managers, and your employees successfully file their income taxes for 2022, all while delivering a seamless payroll experience.

We hope these year-end tools will lighten the load for your hardworking payroll team and keep everyone on the same page.

What’s new with your first pay of 2023?

  1. CPP/QPP contributions, EI, and QPIP premiums are reset in the New Year
  2. Employees should complete a new TD1 form and submit it to payroll so they have the most accurate information when it comes to deducting tax from pay
  3. Refer to our Payroll Year-End Guide for any Federal or Provincial tax changes you need to know about
  4. Stay up to date with any minimum wage changes for your province
  5. In most jurisdictions, the 2022 T4 filing due date is February 28, 2023

Federal TD1 Changes for 2023

Federal TD1
2023
2022
Basic personal*
$15,000*
$14,398
Child amount (for children under 18)
$2,499
$2,350
Age amount
$8,396
$7,898
Pension income amount
TBD
$2,000
Disability amount
$9,428
$8,870
Spouse or common-law partner amount
$15,000
$14,398
Amount for eligible dependent
$15,000
$14,398
Caregiver amount or infirm amount for dependent 18+
$7,999
$7,525

*For 2023, employers are to use the maximum federal basic personal amount (BPAF) of $15,000 for all employees unless the employee provides a new Form TD1. If the BPAF formula was previously implemented on your payroll system, you can continue to use it.

Provincial TD1 Changes for 2023

Basic Personal Amount
2023
2022
Alberta (form)
$21,003
$19,369
British Columbia (form)
$11,981
$11,302
Manitoba (form)
$10,855
$10,145
New Brunswick (form)
$12,458
$10,817
Newfoundland and Labrador (form)
$10,382
$9,803
Northwest Territories (form)
$16,593
$15,609
Nova Scotia (form)
$11,481**
$11,481
Nunavut (form)
$17,925
$16,862
Ontario (form)
$11,865
$11,141
Prince Edward Island (form)
$12,000
$11,250
Québec (EN) (FR)
$17,183
$16,143
Saskatchewan (form)
$17,661
$16,615
Yukon (form)
$15,000***
$14,398

**For 2023, employers are to use the maximum Nova Scotia basic personal amount (BPANS) of $11,481 for all employees unless the employee provides a new Form TD1. If the BPANS formula was previously implemented on your payroll system, you can continue to use it.

***For 2023, employers are to use the maximum Yukon basic personal amount (BPAYT) of $15,000 for all employees unless the employee provides a new Form TD1. If the BPAYT formula was previously implemented on your payroll system, you can continue to use it.

Minimum Wage Info

Jurisdiction
Hourly Rate (General Workers)
Effective Date
Federal
$15.55
April 1, 2022
$15.00
October 1, 2018
$15.65
June 1, 2022
$13.50
October 1, 2022
$13.75
October 1, 2022
$13.70
October 1, 2022
$15.20
September 1, 2021
$13.60
October 1, 2022
$16.00
April 1, 2020
$15.50
October 1, 2022
$14.50
January 1, 2023
$14.25
May 1, 2022
$13.00
October 1, 2022

Employee communications for Canadian payroll year-end

Now that you’re in full swing of getting those T4s issued before the end of February, your inbox might be starting to pile up with questions from employees. Questions like, “What does Box 40 mean on my T4?” or “When do I get my T4?” Don’t sweat it. To educate employees on what they can expect regarding payroll year-end, share the tax slip guides and communications templates provided below.

Interactive 2022 tax slip guides for Canadian employees

Frequently asked questions from employees for 2022 year-end

Sometimes internal communications get missed. If your employees don’t receive or see your communications regarding 2022 tax slip information or what they can expect from their first pay of 2023, we’ve put together a comprehensive FAQ of the most common questions employees ask their payroll team.

Employee tax slip FAQ for payroll year-end

1. Why do I have two T4 Slips?

If you have received more than one T4 from us, there are a few possible reasons:

  • You worked at different locations and/or different divisions of the company which required us to produce a T4 for each business number you worked in
  • You worked or earned income in different ways, for example, you were on contract for a period of time and then gained full-time employment with us
  • You worked for the company in two different provinces during the year

If any of these apply, and you received the two slips together, make sure you include both slips in your tax return.

2. What is box 40 on my T4?

Box 40 on your T4 is the amount of Taxable Benefits you have received in the year. Taxable Benefits are those benefits that have been paid by the company on your behalf. Taxable Benefits include items like Life Insurance and company RRSP contributions.

Taxable Benefits are identified as such on your pay statements. If you total the items identified as Taxable Benefits on your pay statements you should arrive at the total in Box 40. If your total is not the same as Box 40 please contact your payroll team.

3. Why does my income in box 14 on my T4 seem high?

Box 14 includes your gross salary as well as all applicable taxable benefits that are shown in Box 40. The amount shown in Box 40 should be added to your gross year-to-date salary from your final pay statement of the year. The total should equal the amount shown in Box 14. If this is not the case, please contact your payroll team.

If your company pay frequency is bi-weekly or weekly, there is an extra pay period so the amount in Box 14 may be slightly higher than you expected.

4. Why does my income in box 14 on my T4 seem low?

You may have received two or more T4s. The amount shown in Box 14 in each T4 should be totalled and equal to your final December pay statement year-to-date earnings, plus the total of taxable benefits recorded in Box 40 of each T4. If this is not the case please contact your payroll team.

5. What is the difference between a T4 and a T4A?

The Canada Revenue Agency requires that different tax slips be used to report specific types of income.

6.  How can I get a reprint of my tax slip if I lose it?

If your company uses the Avanti Self-Service Portal, you can print as many copies of your T4/T4A from your employee account as required (if you opted in to receive your tax slip electronically).

If you do not have the self-service option by the last day of February, please contact your payroll team who can provide you with a copy of your T4.

Employees can also obtain T4s/T4As online directly from Canada Revenue Agency.

7.  Do I need to print my online tax slips?

If you are filing your taxes electronically, printing the slip is entirely optional. As an employee, you will always have access to the slips through your Employee Self-Service Portal, should you need them now or in the future.

If you file electronically, you can read the values for each of the tax slip boxes online as you are completing your income tax return.

8. Will the Canada Revenue Agency (CRA) accept a self-printed/online tax slip?

T4/T4A/NR4 forms are submitted to the CRA by the employer on behalf of the employee.

In the case of a personal audit, the CRA accepts self-printed tax slips from the Employee Self-Service Portal. The form generated matches all specifications from CRA and will look identical to a printed T4 or T4A.

9. What if there is incorrect information on my T4/T4A?

If your Social Insurance Number is incorrect, or you believe the financial information on your tax receipt is incorrect, please contact your payroll team for them to review. If there is an issue, a new tax receipt may need to be issued. If your address is incorrect, simply enter the correct information on your tax return.

10.  How do I arrange to make changes to my tax claim amounts or have additional taxes deducted from my pay in 2023?

You will need to complete and submit new TD1 Forms (Provincial and Federal) for 2023 indicating the changes or additional amount to be deducted.

Check with your payroll administrator for the TD1 forms or visit the CRA website.

11. Why are over half of my tax slip boxes empty?

Only the tax boxes relevant to you will be completed. But if you feel there is a box that should have a value in it please contact your payroll team.

12. Why is my income in box 14 greater than the CPP pensionable and EI insurable earnings?

Box 14 is the sum of all income you received which was subject to income tax. There is no limit on the amount of income subject to tax deductions.

13. Who should I contact if I have a question?

If you have additional questions or concerns, please contact your payroll team.

To facilitate a response to your query, please have your T4 and/or T4A, as well as your final December 2019 pay stub available.

14.  I need help filing my tax return.

The Canada Revenue Agency can help you if you're having a tough time filing your income tax return.

If you are a student, senior, person with a disability, a newcomer to Canada, or a low-income earner with a simple tax-filing situation, contact Community Volunteer Income Tax Program (CVITP) at 1-800-959-8281 to ask for help. CVITP volunteers work with members of local community organizations who can help you complete and file your return.

Frequently asked questions from employees 2022 first pay period

1. Why is my paycheque less in January than it was in December?

Check your December 2022 pay statement to see if you maxed out on your CPP and EI contributions in 2022. Remember that CPP and EI restart every January.

Additionally, CPP, QPP, EI, and QPIP have increased, which means more will be taken off each paycheque. The new employee annual maximum contributions for 2023 are:

  • CPP: $3,754.45
  • QPP: $4,038.40
  • EI: $1,002.45
  • Québec EI: $781.05
  • QPIP: $449.54

2. Why is my vacation, sick, and PTO balance reset to zero?

Vacation is moved into the previous year’s accrual bank. Sick time and PTO are restarted every January with new balances.

3. I want to contribute to my RRSP in the first 60 days of the new year; what is the RRSP annual contribution limit for 2022?

The maximum RRSP annual contribution limit for 2022 is $29,210.

4. How much am I allowed to put into my TFSA during 2023?

The TFSA limit for 2023 is $6,500.

5. Will the minimum wage be changing in 2023, and if so, when and by how much?

Check out this guide to minimum wages and planned increases across Canada.

6. Why do I need to complete new TD1s each year?

A new TD1 ensures that you inform us of any changes in your life that could impact your income tax calculations. This could include having a new dependent, becoming a caregiver, or recently enrolling in school. Completing a new TD1 ensures your taxes will be calculated accurately at the source, your pay.

7. How do I prevent the additional tax from coming off my cheque this year?

When you complete your new Federal TD1, leave the Additional Tax to be deducted box blank, and Payroll will not deduct additional tax from your pay.

Additional payroll legislative updates and links

Here you’ll find provincial and federal information on payroll deductions, payroll year-end employer kits, and more.

Additional Reading Links

Everything you need for 2022 year-end

You’ve got a lot on your plate and staying organized is key. Don’t stress, we’re here to help you every step of the way. Use our updated year-end resources and checklists to successfully finish 2022 and easily process your first pay of 2023.

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