Ontario Payroll Instructions
Ontario uses a 'step' table for income tax withholding calculations. The tax table calculates different rates for each range of payroll wages. Tax withholding formulas are indexed for inflation, so they changed in 2017, as they do every year.
Click here for more about Goldenseal payroll accounting software.
HINT-- Turtle Creek Software provides free annual updates for Canadian federal and Ontario provincial tax withholding rates.
In order to calculate the provincial taxes correctly for your employees, you must enter into each employee’s account the sum of the number of dependents under age 18 and the number of dependents with disabilities. Enter this value in the Local Exemptions field in each employee ’s account.
Ontario Provincial LCP
The LCP program has been restored, although most employees probably will not use it.
If your employees take a credit for the Ontario labour-sponsored funds tax credit (LCP), create a tax item for their credit amount. To do so, follow these steps:
You'll also need to assign the LCP credit to the employee. Follow these steps:
If several employees use different amounts for LCP, each one will require a separate Tax Item record with the correct amount, and a tax package that includes their deduction.
HINT-- Use the Duplicate button in the Tax Item List window to make a copy of the original and edit the amount. Then, create tax packages for each employee (use the Duplicate command) and select the appropriate LCP Tax Item that you created for that employee.
Fax: (613) 957-3619
Toronto Tax Services Office: