By Yosie Saint-Cyr

The January 1, 2012 edition of the Payroll Deductions Online Calculator (PDOC) is now available on the Canada Revenue Agency website. The CRA has made enhancements to it by implementing the “employer’s Employment Insurance (EI) premium rate” field if a reduced EI premium rate applies to your business; providing revised step-by-step help instructions for each category and each page throughout the process; providing general information for the new CPP contributions rules in “What is new for CPP?” on the sidebar list; and displaying the most frequently asked questions in “FAQ.”

The PDOC calculates payroll deductions for all provinces (except for Quebec), and territories based on the information you provide.

It is a cost effective way to verify payroll deductions formulas; the PDOC applies the exact salary amount to determine the tax deductions. The Payroll Deductions Tables and Payroll Deductions Supplementary Tables apply the mid-point of the salary range to determine the tax deductions.

All tax deductions results are correct, but the PDOC tax deductions results are more precise.

The printed calculations created by PDOC are not intended to be a statement of earnings and therefore should not be used as such.

Yosie Saint-Cyr, LL.B., is managing editor at HRinfodesk.com–Canadian Payroll and Employment Law News.

Originally published in HRinfodesk–Canadian Payroll and Employment Law News and Developments December 2011.