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9.43 Release Notes

To access the 9.43 Release Notes, choose from one of the links below.

  1. 9.43 Release Notes [On-Premise]
  2. 9.43 Release Notes [SaaS]

Top Marginal Tax Bracket change for British Columbia

Effective for the 2020, and subsequent, tax years, British Columbia is adding a top marginal personal income tax rate of 20.5% for taxable income greater than $220,000.

Since employees in this income tax bracket have been taxed at the lower rates for the first six months of this year, a prorated tax rate of 24.2% will be applied for the remaining six months commencing with the first payroll in July. The new bracket will be indexed starting in 2021.

The prorated rate for July 1, 2020 to December 31, 2020 will be 24.2% for income greater than $220,000.

Given the current situation with COVID-19 pandemic we understand that employers are facing unique challenges. For the remainder of 2020 the CRA will expect this change to be implemented on a best-efforts basis.  

New Basic Personal Amount for Yukon

There has been an update to Yukon’s Basic Personal Amount. Starting July 1, 2020, Yukon is adopting a partial Basic Personal Amount for the 2020 tax year to mirror the Federal Basic Personal Amount (BPAF).

The new maximum ‘Basic personal amount’ will increase to $13,229 from $12,298. Since $12,298 has been used for employees for the first six months of this year, a pro-rated basic personal amount of $14,160 will be applied for the remaining six months commencing with the first payroll in July.

To adjust for the first six months, a prorated calculation will apply for the remaining six months, commencing with the first payroll in July.

By default, the Basic Personal Amount in Avanti will remain the partial claim amount of $12,298, to prevent under-taxing employees.

If you wish to default your employees to the maximum Basic Personal Amount, refer to this Help Centre guide.

Given the current situation with COVID-19 pandemic, we understand that employers are facing unique challenges. If you are in need of any assistance, please contact Care@Avanti.ca.

W
Wes is the author of this solution article.

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