Support Bulletin
July 2002 Canadian Tax Changes
Please consult your Microsoft Navision Solution Center to make the following changes
Issue:
The Canadian Government has issued tax changes for British Columbia, Manitoba, Northwest Territories and Nunavut effective July 1 2002.
Please refer to the Canadian Customs and Revenue Agency document t4127_0207-e.pdf for the following changes. http://www.ccra-adrc.gc.ca/tax/business/payroll/t4127/t4127_0207-e.pdf
Resolution:
British Columbia
- The amount for an infirm dependant age 18 or older increases from $2,475 to $3,574.
- The caregiver amount increases from $2,475 to $3,574.
- The disability amount increases from $4,453 to $6,126.
Changes required in Microsoft Navision Payroll
A new line must be added to "Employee Tax Info" for those employees using the British Columbia Tax Authority. The "Total Credits Claimed" field will have to be adjusted to reflect the above changes.
Manitoba
- The basic personal amount increases from $7,412 to $7,634.
- The spouse or common-law partner amount increases from $6,293 to $6,482.
- The age amount (for age 65 and over) increases from $3,619 to $3,728.
- The caregiver amount increases from $3,500 to $3,605
- The disability amount increases from $6,000 to $6,180.
Changes required in Microsoft Navision Payroll
A new line must be added to "Employee Tax Info" for those employees using the Manitoba Tax Authority. The "Total Credits Claimed" field will have to be adjusted to reflect the above changes.
E.g. (Employee has no additional Personal Credits)
Northwest Territories
- The basic personal amount is revised to $11,050 (formerly $7,634).
- The spouse or common-law partner amount is revised to $11,050 (formerly $6,482).
- The age amount (for age 65 and over) is revised to $5,405 (formerly $3,728).
- The disability amount is revised to $8,961 (formerly $6,180).
Changes required in Microsoft Navision Payroll
A new line must be added to "Employee Tax Info" for those employees using the Northwest Territories Tax Authority. The "Total Credits Claimed" field will have to be adjusted to reflect the above changes.
E.g. (Employee has no additional Personal Credits)
Nunavut
- The basic personal amount increases from $7,634 to $10,000.
- The spouse or common-law partner amount increases from $6,482 to $10,000.
- The age amount (for age 65 and over) increases from $3,728 to $7,500.
- The disability amount increases from $6,180 to $10,000.
- The territorial tax rates and income thresholds for 2002 are as follows:
- Personal amounts will be multiplied by the territory's lowest non-zero tax rate of 4%.
| NewRate | Income Bracket | Old Rate |
|---|---|---|
| 4% | On income less than or equal to $31,677 | Formerly 7.2% |
| 7% | On income greater than $31,677 but less than or equal to $63,354 | Formerly 9.9% |
| 9% | On income greater than $63,354 but less than or equal to $103,000 | Formerly 11.7% |
| 11.5% | On income greater than $103,000 | Formerly 13.05% |
Changes required in Microsoft Navision Payroll
A new line must be added to "Employee Tax Info" for those employees using the Nunavut Tax Authority. The "Total Credits Claimed" field will have to be adjusted to reflect the above changes.
E.g. (Employee has no additional Personal Credits)
The following brackets must be created for the Nunavut Income Tax Pay Control effective July 1, 2002. The changes will affect the NN TAX Payroll Control Code.
Nunavut Income Tax Withheld (NN TAX)
Bracket Header:
- Name = W/H TABLE
- Effective Date = 07/01/02 (July 01, 2002),
- Description = Nunavut Tax Table (TONI),
- Filing Status Code = blank,
- Brackets Type = Withholding
Bracket Header:
- Name = LOWRATE
- Effective Date = 07/01/02 (July 01, 2002),
- Description = Lowest Tax Rate in Tax Table,
- Filing Status Code = blank,
- Brackets Type = Tax Credit
Utility Available
Report 50702 (0702 TD1 Tax Credit Increase) was designed to systematically add a line to each Employee Tax Info screen with an effective date of 070102. The new line will be automatically adjusted for any change in the Basic Personal Amount ONLY.
If you have employees affected by other personal credit increases (Caregiver, Disability, etc…), you must manually increase the employee's revised "Total Credits Claimed" to include these other increases.
The report can be run without any filters.
Referencing Files: