Methods of calculating deductions

You can use the manual calculation methods or the payroll deductions tables.

The payroll deductions tables have information to help you calculate CPP contributions, EI premiums, and the amount of federal, provincial (except Quebec), and territorial income tax that you have to withhold from amounts you pay to Canadian employees, employees outside Canada, and beneficiaries.

You can get any of the following versions of the payroll deductions tables, however for income tax deductions you will require your employee's or beneficiary's claim amount before you can calculate these deductions.  For more information, see Calculation methods for income tax.

• Payroll Deductions Tables and Payroll Deductions Supplementary Tables
  You can use these tables to calculate your employees’ payroll deductions, download them and print selected pages.
  
  You can also order a paper copy online or by calling 1-800-959-2221.

• Tables on Diskette (TOD)
  The tables on diskette are an electronic version of the Payroll Deductions Tables and Payroll Deductions Supplementary Tables. TOD also calculates the deductions for commission income, for most taxable automobile benefits, and special payments, such as bonuses.

• Payroll Deductions Formulas for Computer Programs
  If you have a computer, you may want to use these formulas instead of the printed tables to calculate your employees’ payroll deductions.

Forms and publications

• Payroll Deductions Supplementary Tables (T4008)
• Payroll Deductions Tables (T4032)
• Payroll Deductions Formulas for Computer Programs (MC) (T4127)
• Tables on diskette (TOD) (T4143)