NewViews Canadian Payroll computes income tax, Canada Pension Plan, and Employment Insurance calculations as prescribed by CRA document T4127, "Payroll Deductions & Formulas for Computer Programs".
Many NewViews payroll users notice a slight difference between tax deductions obtained from the Canadian Revenue Agency source deductions tables and those calculated by NewViews. This difference is normal, and is explained in the CRA publication "Employer's Guide to Payroll Deductions" as follows:
"When a tax deduction amount is determined by using Option 1, 2, 3 or 4 and compared with the tax deduction tables contained in the Source Deductions Tables publication, the tax amounts will not necessarily be similar. The reason for any tax difference is based on the fact that in the above publication, the tax amounts are determined by using"
the mid-point of the range of remuneration under the column, Pay per period, and
the mid-point of the Net Claim Codes table amounts contained on Form TD1, except for Code 1 when the actual basic personal tax credit amount is used. For Code 0, no personal tax credits are taken into account when computing the tax deduction amounts.
"Consequently, any tax difference resulting when comparing the tax amount determined with Option 1,2,3 or 4 with the manual tax deductions tables will be limited to the difference between the actual remuneration and tax credit amount and the mid-point amount used in the manual tax tables."
Note: The Online Calculator program available from CRA uses the above methodology as well, therefore it cannot be used to verify tax deductions computed according to T4127.
NewViews Canadian Payroll computes Quebec income tax as prescribed by document TP-1015.G-V, (Quebec) Guide For Employers, Source deductions and Contributions.