Here are the latest changes included in the 2024 Year-End Tax Update, Avanti Version 23.12.1. The tax changes don’t apply until you’ve run your year-end and are processing your first pay of 2024.
Wondering how to get started with year-end? Check out the Year-End Prep Checklist and the Year-End Process Checklist.
Awaiting the TD1 Publish
We’re still waiting for the TD1 forms to be released. We’ll include these forms in a second update later this month. Watch your inbox for more info.
Don’t worry; you can still complete year-end. Go to the Year-End Prep and Year-End Process Checklist to learn more.
2024 CRA and RQ Tax Changes
Avanti 23.12.1 includes changes for the CRA 119th tax update and the latest changes from Revenu Québec. To review the new rates and values, visit 2024 Source Deductions, Rates, and Payroll Changes.
Enhanced CPP and QPP Introduced
Starting January 1, 2024, the second phase of enhanced CPP and QPP comes into effect. Once employees have earned over $68,500 of pensionable income in 2023, a 4% deduction begins for pensionable income over $68,500, up to $73,200.
You’ll want to set up these new codes before your first pay of the new year; we’ll start the deductions once the threshold is met in 2024. Go to Enhanced CPP and QPP Setup Guide.
QPP Benefits/Deductions
Starting January 1, 2024, QPP will no longer be deducted for employees over 73 years old and those turning 73 in the calendar year.
Opting out of QPP
Starting January 1, 2024, employees over 65 years old and receiving pension benefits can opt out of QPP contributions by providing their employer with a completed RR-50-V form - Election to Stop Contributing to the Québec Pension Plan.
We’ve created a new document type, the RR-50-V Election form, to streamline this process. QPP isn’t deducted when a Quebec employee over 65 years old has an employee document with this type, regardless of whether the deduction codes are active on their employee profile.
To learn more, go to Opting out of CPP and QPP.
Provincial Changes
Manitoba
Two tax brackets are increasing in 2024:
$36,842 is rising to $47,000.
$79,625 is rising to $100,000.
Prince Edward Island
The tax brackets and tax rates have been adjusted in Prince Edward Island; there are now five tax brackets instead of three.
The adjusted tax rates and brackets are:
Under $32,656, the tax rate is 9.65%.
From $32,656 to $64,313, the tax rate is 13.63%.
From $64,313 to $105,000, the tax rate is 16.65%.
From $105,000 to $140,000, the tax rate is 18.00%.
Over $140,000, the tax rate is 18.75%.
Electronic Payment of Remittances Over $10,000
Starting in 2024, amounts over $10,000 must be electronically submitted to the Receiver General of Canada or Revenu Québec. You can learn more about the new policies on the CRA and Revenu Québec websites.
Changes To Tax Slips
Electronically Filing Information Returns
Starting January 1, 2024, you must electronically file if you’re filing 6 or more information returns of the same type with the CRA and RQ, except RL-13 and RL-24 slips. This includes all the Tax Slips generated in Avanti.
Go to CRA Filing Information or RQ filing returns for more information about this change.
T4 Tax Slips
Some changes to the T4 tax slips were introduced this year.
Box 45 - Employer-offered dental benefits
Box 45 is mandatory for all T4 tax slips starting this year. It must reflect the dental coverage available to the employee and their family on December 31 of the tax year.
1 - Not eligible to access any dental care insurance or coverage of dental services of any kind
2 - Payee only
3 - Payee, spouse and dependent children
4 - Payee and their spouse
5 - Payee and their dependent children
To streamline dental benefit reporting, you can now set dental benefits in Pay Groups and Modify Tax Slip Data. You can also import box 45, and update terminated employees to not have dental insurance/coverage during Extract Employee Tax Slip Data. To learn more, go to Dental Benefits Reporting in Avanti.
Box 16A and box 17A – Second CPP/QPP contributions
Additional boxes were added for the employee and employer portion of the second CPP/QPP contributions. These don’t take effect until you file your 2024 tax slips next year.
T4A Tax Slips
There are some changes to the T4A tax slips for the 2023 tax year.
Box 015 – Payer-offered dental benefits
Box 015 is now available on T4A and must be included on tax slips reporting an amount for box 016. It must reflect the dental coverage available to the employee and their family on December 31 of the tax year.
1 - Not eligible to access any dental care insurance or coverage of dental services of any kind
2 - Payee only
3 - Payee, spouse and dependent children
4 - Payee and their spouse
5 - Payee and their dependent children
To streamline dental benefit reporting, you can now set dental benefits in Pay Groups and Modify Tax Slip Data. You can also import box 015, and update terminated employees to not have dental insurance/coverage during Extract Employee Tax Slip Data. To learn more, go to Dental Benefits Reporting in Avanti.
RL-1 Forms
There’s nothing new for RL-1 forms at this time. We’ll let you know if this changes.
RL-2 Forms
There’s nothing new for RL-2 forms at this time. We’ll let you know if this changes.
T2200 Form
The 2023 T2200 Tax form hasn’t been published by the CRA yet; we’ll let you know if there are any changes once it’s available.
T2200s Form
The CRA announced that the T2200s aren’t effective for the 2023 tax year. You’ll need to create a T2200 form for eligible employees.
TP-64.3-V Form
The new TP-64.3-V Form is being included in the release later in December.
T4A-RCA Tax Forms
There are no new changes on this form.
Creating Tax Slips
For details on populating the tax slip boxes, take a look at these CRA and RQ resources:
Product Updates
Enhanced CPP and QPP Added Throughout Avanti
We’ve added visibility into eCPP2 and eQPP2 deductions starting with the 2024 payroll year. You’ll now see these in:
CPP/QPP Groups
Totals on the Employee Profile
Vendor Remittance, Vendor Remittance Printing and Vendor Remittance Balance Reports for Receiver General and Quebec Receiver. You’ll see these changes after you Initial Employee Totals during year-end or if you create new Receiver and Quebec remittances.
Receiver General Balance Report and Quebec Remitter Balance Report
For eCPP and eQPP to deduct for your employees, you’ll need to create the Benefit/Deduction Code and add them to your employees. Take a look at the Enhanced CPP and QPP Setup Guide for more information.
Initialize Employee Totals Indexes Employee Tax Factors
Starting this year, your employees only need to submit new TD1 Forms if there are changes to their tax credits.
To comply with CRA legislation and payroll best practices, Avanti now always indexes your employee’s tax factors to next year’s values during Initialize Employee Totals.
Printing your Vendor Remittance Reports
Printing your Vendor Remittance information is more efficient, especially if you’re gathering information for multiple vendors! You can now print directly from the Vendor Remittance grid, so there’s no need to open each remittance to print.
To print, simply select the Remitter and select Print.
More options added
There’s also more options when you print your Vendor Remittance; you can now:
Include information from a specific Calendar Year
Include a specific date range based on the remittance due date
Remove Vendor Information
Move to the New Avanti Experience
If all your employees aren’t already using the New Avanti Experience, they’ll be automatically transitioned on the evening of January 10, 2024, with the 24.1.1 update.
Onboarding Welcome Message
Equip your new employees with more context about your organization with a longer Onboarding Welcome Message. This message can now be up to 4000 characters, so nothing is holding you back from providing all the relevant details.
Print RL-2 Summary Retired
Last year we announced that we’ll be retiring the ability to print RL-2 Summary within Avanti; Revenu Québec no longer requires it to be included when you file.
If it’s still in your Avanti Desktop, you can remove it from the System Menu.