Here are the latest changes included in the 2023 Year-End Tax Update, Avanti Version 10.08. The tax changes don’t apply until you’ve run your year-end and are processing your first pay of 2023.
2023 CRA and RQ Tax Changes
Avanti 10.08 includes changes for the CRA 117th tax update and the latest changes from Revenu Quebec. To review the new rates and values, visit 2023 Source Deductions Rates, and Payroll Changes.
Canada Pension Plan (CPP) additional contributions tax treatment
As of January 1, 2023, CPP enhanced contributions are now treated as a reduction to taxable income at source. The formulas and corresponding factors to calculate the reduction to taxable income for the CPP enhanced contributions have been adjusted accordingly.
Federal Basic Personal Amount
Employers can now use the maximum federal basic personal amount of $15,000 for all employees unless the employee provides a new Form TD1.
Indexation will resume for the 2023 tax year.
The tax brackets and tax rates have been adjusted in New Brunswick from five brackets to four. The adjusted tax rates can be found below:
Under $47,715, the tax rate is 9.40%.
From $47,715 to $95,431, the tax rate is 14%.
From $95,431 to $176,756, the tax rate is 16%.
From $176,756 and over, the tax rate is 19.50%
Employers can now use the maximum Nova Scotia basic personal amount of $11,481 for all employees unless the employee provides a new Form TD1NS.
Prince Edward Island
The basic personal amount for Prince Edward Island increased from $11,250 to $12,000.
Employers can now use the maximum Yukon basic personal amount of $15,000 for all employees unless the employee provides a new Form TD1YT.
Starting with the first pay of 2023, 1% of employees’ QPP deductions are automatically tax-exempt during payroll processing.
Changes To Tax Slips
T4 and T4A Tax Slips
There are no changes in Avanti for creating T4 and T4A tax slips.
RL-1 and RL-2 Tax Slips
There’s a new box for authorization numbers at the bottom right-hand corner of your tax slip, and you can no longer choose the authorization number.
This will be our last year supporting RL-2 summary forms; next year we’ll only support RL-1 summary forms.
T2200s Tax Form
The CRA announced that the T2200s are in effect again for the 2022 tax year. Updated forms aren’t published yet but we’ll let you know when they are and when there’s an update available.
T4A-RCA and T2200 Tax Forms
There are no new changes in these forms.
Creating Tax Slips
For details on populating the tax slip boxes, take a look at these CRA and RQ 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 to your 2022 tax slips.
Completed TD1 PDFs will not be available to download from ASSP in Avanti 10.08. We'll provide an update for all clients when these forms are available.
Pay Statement Passwords on ASSP
We’ve streamlined Pay Statement access when passwords to view pay statements are required. Now, if the employee hasn’t created a statement password.
The Email Statement Password Mask will set the employee’s password.
If there is no Email Statement Password Mask, the password is the employee’s SIN.
Previously, employees were prompted to create a statement password if they hadn’t already. For more information on setting the password requirements, please visit How to Password Protect Tax Slips.
Onboarding TD1 Forms
In compliance with CRA guidelines, a certification statement has been added to our TD1 Federal and Provincial onboarding forms. Employees must confirm that the information provided is accurate and complete before completing the forms.
Requirement Report Enhancement
Schedule requirements reports now include the location code and location description. This includes:
Requirements Listing (By Position)
Requirements Listing (By Date)
Requirements Calendar (By Position)
Requirements Calendar (By Date)
Negative Hours in Overtime
Negative hours can now be taken into account when calculating overtime in Time Data. We’ve added a setting that allows negative time to adjust the overtime threshold.
By default, overtime calculations will continue to ignore negative time. To change this, update the value in Program Option Tc.TimeData.AddNegativeHoursToOtAccumulator to Y.
2021 NOC Codes
The 2021 National Occupation Classification (NOC) codes, published by Employment and Social Development Canada, are now supported within Job Classifications. You can now update all of your Job Classifications with up-to-date NOC codes.
For now, the 2016 NOC codes remain so you’ll have time to assign 2021 codes to the Job Classifications.