What's new for 2024

  • Province of Employment - CRA and RQ updated their Province of Employment (POE) administrative policies effective January 1, 2024. There is a decision tree on the CRA website that allows POE assignment to a permanent establishment within a virtual employee’s province of attachment rather than the province from which they are paid.

  • Second Additional CPP/QPP Contributions - Beginning in 2024, pensionable earnings from the YMPE to the new second earnings ceiling, called the YAMPE (Year’s Additional Maximum Pensionable Earnings) became subject to additional CPP and QPP contributions of 4% each for employees and employers.

    These second contribution amounts will be reported to 2024 tax forms as follows: T4 Box 16A (CPP2), T4 Box 17A (QPP2) and RL-1 Box B.B (QPP2) and B-2 (CPP2).

  • Quebec Pension Plan - QPP administration for older workers was modified:

    • Starting in 2024, employees aged 65 and over had a new option to stop paying QPP contributions if they were receiving a QPP or CPP retirement pension. The election form to stop or restart contributions is called an RR-50-V.

    • Employees who turned 73 in 2024 were no longer obligated to contribute to QPP. QPP deductions were to have stopped with the first pay of January 2024 for employees with a 1951 birthyear.

  • Electronic Filing Threshold - CRA reduced the threshold for filing tax forms electronically from 50 to 5 for 26 different form types including T4, T4A, N4R, and T4A-NR4 starting in 2024.

  • New T4 Codes - in May 2024, CRA introduced new codes to the T4 slip for the 2024 tax year by modifying its “T4 slip – Information for employers” webpage:

    • Code 94, Indian exempt employment income - RPP contributions Report only the employee contributions to a registered pension plan (RPP) that relate to tax-exempt employment income paid to Status Indians.

      Note: RPP contributions that relate to taxable employment income are still to be reported to T4 Box 20.

    • Code 95, Indian exempt employment income - Unions Dues Report only union dues related to tax-exempt employment income paid to Status Indians.

      Note: Union dues that relate to taxable employment income are still to be reported to T4 Box 44.

  • New T4 and RL-1 Codes Capital Gains changes - Canada’s Federal Budget 2024 announced an increase in the capital gains inclusion rate from 1/2 to 2/3 on the portion of capital gains realized in the year that exceed 250,000 for individuals, for capital gains realized on or after June 25, 2024. Revenu Quebec has confirmed a harmonized change consistent with the federal announcement. To support stock option benefit and deduction reporting in 2024, it is anticipated that there will be new T4 and RL-1 Codes introduced. More guidance is expected from Canada Revenue Agency and Revenu Quebec this fall.

  • Quebec’s Health Services Fund (QHSF) Threshold - The upper total payroll threshold for the Health Services Fund (beyond which the rate is 4.26%) increased in January 2024 (from 7.2M to 7.5M) based on indexation.

  • Personal income tax - starting January 2024, increased the basic personal amount from 12,000 to 13,500. Also, effective January 2024, personal income tax rates were reduced on the first 3 income thresholds, there were 2 new upper-income thresholds and the 10% surtax stopped being applied.

  • Paid sick leave - starting October 1, 2024, introduced an entitlement of up to 3 paid sick leave days. This was in addition to the historic 3 unpaid sick leave days. The number of paid days available per year depends on the length of employment and unused days do not carry forward; 1 day after 12 month, 2 days after 24 months and 3 days after 26 months.

  • Personal income tax - starting January 1, 2024, increased the personal income tax upper thresholds from 36,842 to 47,000, from 79,625 to 100,000 and from > 79,625 to > 100,000.

  • Health and Education Levy (HE Levy) - starting January 1, 2024, increased the exemption threshold from 2.0M to 2.25M, and the upper threshold from 4.0M to 4.5M.

  • WorkSafeBC assessable earnings - in January 2024 updated guidance was released that changed how assessable payroll is to be determined. Taxable benefits that had previously been excluded are to be included starting in 2024. Refer to BC’s Assessment Practice Directive 5-245-2(A), Appendix B for details.

  • Employer Health Tax (EHT) - in April 2024 the EHT exemption increased from 500,000 to 1M and the notch rate increased from 2.925% to 5.85%. The changes applied to remuneration paid on or after January 1, 2024.

  • Pay Transparency Reporting - on November 1, 2024 employers with 1,000 or more BC employees were required to complete and post a pay transparency report for the first time. The process involves an analysis of employees’ salary, hours worked, bonus pay, overtime pay and overtime hours. An online reporting tool is available to assist employers.

    The requirement for this report will extend to employers with 300 or more BC employees by November 1, 2025. The threshold drops to 50 or more BC employees by November 1, 2026.