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Did payroll taxes go up in 2018?

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  • Jan 14th, 2018 1:54 pm
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[OP]
Member
Dec 13, 2017
247 posts
171 upvotes

Did payroll taxes go up in 2018?

I don't know if this belongs here or not but I just recieved my first paycheck this and I noticed that I got $20 net Less and difference is in the federal / provincial tax...

Any accountants or payroll managers want to comment?
18 replies
Deal Addict
Aug 25, 2015
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Montreal, QC
you could have look it up on the website but yes, deduction did go up
Deal Fanatic
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Dec 27, 2009
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Victoria, BC
Not in Ontario (I have no idea where you are). Unless your income went up, I'm pretty sure fed and prov tax rates are the same.
[OP]
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Dec 13, 2017
247 posts
171 upvotes
I live in Ontario and I tried to look online and it confused me even more. My salary stayed the same.

Anybody else noticed changes ? Or can confirm this?
Deal Fanatic
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Dec 8, 2007
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Could be CPP contributions, which usually taper off around the middle the year once the max. annual contribution amount is reached.
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Newbie
Aug 19, 2015
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Toronto, ON
It could be CPP which usually maxes out within the year. You should compare it with Jan 2017's paystub and if the deduction was there - it is about 5%.
Deal Addict
Jul 12, 2008
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GTA
Ei went up for sure, the Cpp effect mentioned earlier should only affect you if you maxed Cpp last year. The federal and provincial minimums went up a little due to inflation but that would have reduced your taxes a little not increase it.

Here is the ei link https://www.canada.ca/en/revenue-agency ... imums.html
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Dec 27, 2009
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DontCareyou wrote: I live in Ontario and I tried to look online and it confused me even more. My salary stayed the same.

Anybody else noticed changes ? Or can confirm this?
I'm also in Ontario. If you go to Payroll Deductions Online Calculator on CRA website you can plug in your numbers and you will see the taxes haven't changed. Actually just for giggles I plugged in an imaginary number (bi-weekly, $2500 under salary) and then chose a date in December 2017 to see what it gave me. I took the same numbers and plugged in a date in January 2018 and it actually gave me a few dollars more in net pay.

https://www.canada.ca/en/revenue-agency ... lator.html
Last edited by Chickinvic on Jan 12th, 2018 11:21 am, edited 1 time in total.
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Dec 27, 2009
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ambitiouz wrote: It could be CPP which usually maxes out within the year. You should compare it with Jan 2017's paystub and if the deduction was there - it is about 5%.
That was my first thought too (EI and CPP contributions), but OP said it was fed/prov tax, so that is puzzling. Tax rates have not gone up.
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Dec 27, 2009
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badmus wrote: Ei went up for sure, the Cpp effect mentioned earlier should only affect you if you maxed Cpp last year. The federal and provincial minimums went up a little due to inflation but that would have reduced your taxes a little not increase it.

Here is the ei link https://www.canada.ca/en/revenue-agency ... imums.html
The EI increase would be very minimal (I plugged in a bi-weekly salary of $2500 and the difference from last year worked out to about $0.75 per paycheque).
Deal Guru
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Mar 31, 2008
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ambitiouz wrote: It could be CPP which usually maxes out within the year. You should compare it with Jan 2017's paystub and if the deduction was there - it is about 5%.
This is usually it. CPP maxes out usually in the 2nd half of the year where the deduction is quite noticeable per paycheck.
[OP]
Member
Dec 13, 2017
247 posts
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The CPP and EI is the same amount as the checks last year. I don't think I could have maxed them out since I only joined this job in Nov.


I couldn't find any mentione of increased taxes online either...
Deal Fanatic
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Dec 27, 2009
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Have they started taking out Union dues or something of that nature?
[OP]
Member
Dec 13, 2017
247 posts
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Nope no union fees. The only thing that increased was my provincial/federal taxes...it's doesn't make any sense. I asked a family member who does payroll to see what's going on....

I guess the only option is to talk to HR and see what going on. I also really find anything online any payroll taxes going up. Usually when they do, there would be some articles on it...
Member
Jul 24, 2015
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DontCareyou wrote: Nope no union fees. The only thing that increased was my provincial/federal taxes...it's doesn't make any sense. I asked a family member who does payroll to see what's going on....

I guess the only option is to talk to HR and see what going on. I also really find anything online any payroll taxes going up. Usually when they do, there would be some articles on it...
Yea I actually noticed my pay check was a bit lower by a couple tens this period as well.

Everything else remain constant, seems like the government is taking more now.
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Dec 27, 2009
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PeterWIlliams wrote: Yea I actually noticed my pay check was a bit lower by a couple tens this period as well.

Everything else remain constant, seems like the government is taking more now.
Taxes did not rise. Go plug in the numbers in the payroll calculator online (I linked to it previously). I've put several different salary amounts in and compared December 2017 to January 2018 and taxes are not higher. Tax rates have not gone up, in fact all of my examples wound up with slightly more take home pay in 2018.
Deal Expert
Mar 25, 2005
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Did you file a TD1 last year that changed your claim code?
[OP]
Member
Dec 13, 2017
247 posts
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You are right. I tried the CRA calculator and it worked out well...my work switched to a new payroll system so it could be an error within that?

I also asked a family member to takes care of payroll, they said taxes did not go up. Will check with HR on Monday and report back
Chickinvic wrote: Taxes did not rise. Go plug in the numbers in the payroll calculator online (I linked to it previously). I've put several different salary amounts in and compared December 2017 to January 2018 and taxes are not higher. Tax rates have not gone up, in fact all of my examples wound up with slightly more take home pay in 2018.

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