O. Reg. 615/00: AMOUNTS DEDUCTED OR WITHHELD BY EMPLOYERS

 

ONTARIO regulation 615/00

made under the

income tax act

Made: November 29, 2000
Filed: November 30, 2000

Amending Reg. 646 of R.R.O. 1990

(Amounts Deducted or Withheld by Employers)

1. (1) Paragraph 12 of subsection 3 (1) of Regulation 646 of the Revised Regulations of Ontario, 1990 is revoked and the following substituted:

12. 38.5 per cent, if the payment of remuneration is made after June 30, 1999 and before July 1, 2000.

13. 36.5 per cent, if the payment of remuneration is made after June 30, 2000.

(2) Paragraph 12 of subsection 3 (3) of the Regulation is revoked and the following substituted:

12. 38.5 per cent, if the payment of remuneration is made after June 30, 1999 and before July 1, 2000.

13. 36.5 per cent, if the payment of remuneration is made after June 30, 2000.

(3) The definition of “notional provincial tax” in subsection 3 (7) of the Regulation is amended by striking out the portion before clause (a) and substituting the following:

“notional provincial tax” means, for the taxation year of an employee in respect of an amount to be deducted or withheld from a payment of remuneration to the employee, the product determined by multiplying the percentage used in subsection (1) or (3) to determine the amount to be deducted or withheld by,

. . . . .

(4) Paragraph 21 of subsection 3 (8) of the Regulation is amended by inserting “and before July 1, 2000” after “after June 30, 1999”.

(5) Paragraph 22 of subsection 3 (8) of the Regulation is amended by inserting “and before July 1, 2000” after “after June 30, 1999”.

(6) Subsection 3 (8) of the Regulation is amended by adding the following paragraphs:

23. In the case of a payment of remuneration made after June 30, 2000 from which an amount is required to be deducted or withheld under subsection (1), the amount determined by dividing the employee’s additional tax factor, if any, as calculated under subsection (8.1) for the year in which payment is made by the maximum number of pay periods for that taxation year.

24. In the case of a payment of remuneration made after June 30, 2000 from which an amount is required to be deducted or withheld under subsection (3), the amount calculated using the formula,

A × B / C

in which,

  “A” is the employee’s additional tax factor, if any, as calculated under subsection (8.1) for the taxation year in which payment is made,

  “B” is the amount of the payment of remuneration, and

  “C” is the amount of the employee’s notional net remuneration as determined under paragraph 102 (2) (e) of the Federal Regulations for the taxation year in which payment is made.

(7) Section 3 of the Regulation is amended by adding the following subsection:

(8.1) An employee’s additional tax factor for a taxation year is the amount calculated as follows:

1. If the employee’s notional provincial tax for the taxation year exceeds $1,322 but does not exceed $3,466, the amount is calculated using the formula,

0.0559 ( D - $1,322)

in which

“D” is the employee’s notional provincial tax for the taxation year.

2. If the employee’s notional provincial tax for the taxation year exceeds $3,466 but does not exceed $3,957, the amount is calculated using the formula,

$120 + [0.2559 × (D - $3,466)]

in which

“D” is the employee’s notional provincial tax for the taxation year.

3. If the employee’s notional provincial tax for the taxation year exceeds $3,957 but does not exceed $4,373, the amount is calculated  using the formula,

$246 + [0.3107 × (D - $3,957)]

in which

“D” is the employee’s notional provincial tax for the taxation year.

4. If the employee’s notional provincial tax for the taxation year exceeds $4,373, the amount is calculated using the formula,

$375 + [0.6707 × (D - $4,373)]

in which

“D” is the employee’s notional provincial tax for the taxation year.

(8) Paragraph 2 of subsection 3 (12) of the Regulation is amended by inserting “and before July 1, 2000” after “June 30, 1998”.

(9) Subsection 3 (12) of the Regulation is amended by adding the following paragraph:

3. If the payment of remuneration is made after June 30, 2000, no amount shall be deducted or withheld from the payment if the employee’s notional provincial tax for the taxation year in which the payment is made is equal to or less than $152.

2. This Regulation shall be deemed to have come into force on July 1, 2000.