QuickBooks Desktop provides active Payroll subscription customers with payroll updates that include the most up-to-date and accurate rates and calculations for supported provincial and federal tax tables, payroll tax forms, and EFILE options.

Please note that you may need to manually enter their Provincial TD1 amounts in QuickBooks Desktop if you have Nova Scotia employees.

What is the most recent version of the payroll tax table, and how do I know if I have it?

Latest tax table version for QuickBooks Desktop 2021

Version 11330003 (QuickBooks Desktop 2021 or QuickBooks Desktop 2020) was released on December 31, 2020, and is effective from January 1, 2021, to June 30, 2021.

To see which version you have, do the following:

  • Choose My Payroll Service, then Tax Table Information from the Employees menu in QuickBooks.
  • The first three numbers under “You are using tax table version” should read 11330003. If you updated your product earlier this year, you might already have release 113.

Please note that to download this tax table update, make sure you’re using QuickBooks Desktop 2021, QuickBooks Desktop Enterprise Solutions 21.0, QuickBooks Desktop 2020, or QuickBooks Desktop Enterprise Solutions 20.0.

How do I get the latest payroll tax tables?

If you have a QuickBooks Payroll subscription, you can get updates through the Internet.

The simplest way to do this is to set up automatic updates in QuickBooks such that it automatically instals payroll updates as soon as they become available. You can also download the most recent payroll update from QuickBooks at any time:

  • From the Help menu, choose Update QuickBooks.
  • Select the Update Now option from the drop-down menu.
  • Choose to Get Updates.
  • Exit QuickBooks Desktop when the download completes. 

Payroll tax tables will be updated in January 2021: We incorporate the following details codes for reporting job income and retroactive compensation due to the COVID-19 pandemic: 57, 58, 59, and 60.

Employers can use new other information codes when reporting employment income and retroactive payments in the following periods for the tax year 2020, in addition to reporting employment income in Box 14 or Code 71:

  • Code 57: Earnings from employment – March 15 to May 9
  • Code 58: Earnings from employment – May 10 to July 4
  • Code 59: Earnings from jobs – July 5 to August 29
  • Code 60: Earnings from employment – August 30 to September 26

Effective Date

1/1/2021

7/1/2020

Tax Table version #

113

112

TD1 Amounts

 

 

Federal

13, 808

12,298

AB

19, 369

19,369

BC

11, 070

10,949

MB

9, 936

9,838

NB

10, 564

10,459

NL

9, 536

9,498

  

NT

15, 243

15,093

NU

16, 647

16,304

ON

10, 880

10,783

PE

10, 500

10,000

QC

15, 758

15,532

SK

16, 225

16,065

YT

BPAYT

14, 160

ZZ (employees outside Canada)

0

0

   

Effective Date

1/1/2021

7/1/2020

Tax Table version #

113

112

Canada Pension Plan (CPP) – outside Quebec

 

Maximum Pensionable Earnings

61, 600

58,700

Basic Exemption

3, 500

3,500

Contribution Rate

5.45%

5.25%

Maximum Contribution (EE)

3166.45

2,898

Maximum Contribution (ER)

3166.45

2,898

Employment Insurance (EI) – outside Quebec

 

Maximum Insurable Earnings

56, 300

54,200

Premium EI Rate (EE)

1.58%

1.58%

Premium EI Rate (ER) (1.4*EE)

2.21%

2.62%

Maximum Premium (EE)

889.54

856.36

Maximum Premium (ER)

1245.36

1,420.04

   

Effective Date

1/1/2021

7/1/2020

Tax Table version #

113

112

Quebec Pension Plan (QPP)

  

Maximum Pensionable Earnings

61, 600

58,700

Basic Exemption

3, 500

3,500

Contribution Rate

5.90%

5.70%

Maximum Contribution (EE)

3, 427.90

3,146.40

Maximum Contribution (ER)

3, 427.90

3,146.40

Employment Insurance (EI – Quebec only)

 

Maximum Insurable Earnings

56, 300

54,200

Premium EI Rate (EE)

1.18%

1.20%

Premium EI Rate (ER) (1.4*EE)

1.65%

1.68%

Maximum Premium (EE)

664.34

650.40

Maximum Premium (ER) (1.4*EE)

930.08

910.56

Quebec Parental Insurance Plan (QPIP)

 

Maximum Insurable Earnings

83, 500

78,500

Contribution Rate (EE)

0.49%

0.494%

Contribution Rate (ER) (1.4*EE)

0.69%

0.692%

Maximum Contribution (EE)

412.49

387.79

Maximum Contribution (ER) (1.4*EE)

577.82

543.22

Commission des normes du travail (CNT)

 

Maximum earnings subject to CNT

83, 500

78,500

If your TD1 amounts haven't been revised after downloading the new tax table changes, run the following checks:

  • Is it before or after the effective date of the tax table? For example, if you downloaded tax table version 113 on December 31, 2020, you won’t see the modified amounts until January 1, 2021, when the tax table becomes effective.
  • Have you ever had to manually change the TD1 amounts after downloading the product update containing the latest tax tables after January 1, 2021, or after setting up a new employee? The new tax table will not override any previously adjusted TD1 amounts if you have ever manually changed the TD1 quantities for an employee. In the future, you’ll have to adjust the TD1 numbers manually.
  • Is there anybody on your team who has more than the necessary TD1 amounts? Those workers with the required payments for the previous tax tables will have their TD1 costs updated automatically by QuickBooks Desktop.

Conclusion

In conclusion, QuickBooks Desktop software helps you manage the accounts and finances of a particular organisation. This blog is created to make you understand the taxation of the current year, so please go through and add it to your information bank and use it accordingly. I hope that this blog helped you and was worth a read.