Here are the latest changes included in the 2022 Year-End Tax Update, Avanti Version 10.03. The tax changes don’t apply until you’ve run your year-end and are processing your first pay of 2022.
2022 CRA and MRQ Tax Changes
10.03 includes changes for the CRA 115th tax update and the latest changes from Revenu Quebec. To review the new rates and values, visit 2022 Source Deductions, Rates, and Payroll Changes.
All employees will have a basic personal amount of $14,398 after you’ve Initialized Employee Totals unless this amount is updated on the Employee Profile.
Employers must use the basic personal amount of $14,398 unless an employee submits a new TD1 for 2022, as per Bill C-30.
This could result in under-taxation of employees making more than $155,625. These employees should complete a TD1-WS and submit a new Federal TD1.
Newfoundland and Labrador
Newfoundland and Labrador has added new tax brackets and adjusted some tax rates for the existing brackets.
Income between $139,780 and $195,693 is now taxed 17.8%.
Income between $195,693 and $250,000 is now taxed 19.8%.
New tax brackets
Income between $250,000 and $500,000 is taxed 20.8%.
Income between $500,000 and $1,000,000 is taxed 21.3%.
Income over $1,000,000 is taxed 21.8%.
All employees will have a basic personal amount of $11,481 unless this amount is updated on the Employee Profile after you’ve Initialized Employee Totals.
Employers must use the basic personal amount of $11,481 unless an employee submits a new TD1 for 2022.
This could result in over-taxation of employees making more than $25,000. These employees should complete a TD1NS-WS and submit a new TD1.
Prince Edward Island
The 2022 basic personal amount is $11,250.
All employees will have a basic personal amount of $14,398 unless this amount is updated on the Employee Profile after you’ve Initialized Employee Totals.
Employers must use the basic personal amount of $14,398 unless an employee submits a new TD1 for 2022.
This could result in over-taxation of employees making more than $155,625. These employees should complete a TD1YT-WS and submit a new TD1.
Changes To Tax Slips
New tax slip codes have been added for 2021 tax slips. Need to use a new code on an employee’s tax slip? You can update the T-Slip tab on the Earning and Deduction/Benefit Codes or you can update an employee’s tax slip in Modify Employee Tax Slip Data.
T4 Tax Slip Changes
There are no changes in Avanti for creating T4s.
T4A Tax Slip Changes
Code 37 Added – Advanced life deferred annuity purchase
Any annuity payments deferred until the end of the year the annuitant turns 85 should be entered in code 37.
Code 200 Added – Provincial/Territorial COVID-19 financial assistance payments
Any provincial or territorial government paid amounts for COVID-19 assistance should be entered in code 200.
Code 201 Added – Repayment of COVID-19 financial assistance
Box 201 is now available to report any 2020 overpayments of COVID-19 financial assistance payments repaid in 2021.
Code 205 Added – One-time payment for older seniors
Box 205 is now available for the one-time payment for older seniors paid by the Government of Canada.
Code 210 Added– Postdoctoral Fellowship Income
Box 210 is available for Postdoctoral Fellowship Income. Amounts entered in box 210 automatically update box 105.
RL-1 Tax Slip Changes
There are no changes in Avanti for creating RL-1.
RL-2 Tax Slip Changes
Box RVDAA added for Advanced life deferred annuity (ALDA)
There are changes to reporting for amounts paid throughout the year who is a Quebec resident or who was a Quebec resident before ceasing to be a resident of Canada. Review the RL-2.G-V to ensure you’re reporting correctly.
NR4 Tax Slip Changes
Box 86 Added - One-time payment for older seniors
Box 86 is now available for the one-time payment for older seniors paid by the Government of Canada, which must be entered in box 86 of the NR4 slip. Amounts entered in box 16 automatically update box 14 or 24.
Mandatory Electronic filing of T4, T4A, and NR4 Tax slips
Mandatory electronic filing of some income tax information returns has lowered from 50 to 5 returns. If you’re creating more than 5 returns for the tax slip type, you’ll need to file your 2021 returns by Internet file transfer or Web Forms. Note: as of publishing, this legislation has not been finalized.
T2200s Tax Form
The CRA announced that the T2200s are in affect again this year. The new forms haven’t been released, but we’ll let you know when they are and when there’s an update available.
T4A-RCA and T2200 Tax Slip Updates Not Available
At this time, the CRA hasn’t published updates for some tax slips. If they do, we’ll let you know whether an update is needed.
Creating Tax Slips
For details on populating the tax slip boxes, take a look at these CRA and MRQ resources:
Want to learn more about creating tax slips in Avanti? Stay tuned for our webinars in January. Check out last year’s webinar to get a head start. There are only minor changes for your 2021 tax slips.
Terminology: Aboriginal updated to Indigenous
Previously within our system, we offered the label Aboriginal when referring to Indigenous peoples of Canada including First Nations, Inuit, and Métis. As a part of our ongoing diversity and inclusion efforts, we have respectfully updated the terminology to Indigenous to more accurately represent the diverse collective.
Help ensure your employees get called their preferred names by limiting the name formats available on ASSP. There’s now a new setting so that users can only select the employees’ preferred name for the format instead of being able to choose a given name or preferred name.
By default, both the given name and preferred name will remain available in Name Format. Check out our Help Center article for more details.
If you an On-Prem Client looking for more information on updating Avanti, please go to the Avanti Software Update Installation Guide.
Don’t want to manage your own updates? Please get in touch with your client success manager or email@example.com; they can help guide you through any questions you have about our Clou offering.