What's new for 2024

• Province of Employment - CRA has updated their Province of Employment (POE) policy effective January 1, 2024. There is a decision tree on their 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.

• Electronic Filing Threshold – CRA has 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.

Second Contributions of CPP/QPP - Beginning in 2024, pensionable earnings from the YMPE to the new second earnings ceiling, called the YAMPE (Year’s Additional Maximum Pensionable Earnings) are 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 (CPP), T4 Box 17A (QPP) and RL-1 Box B.B (QPP) and B-2 (CPP).

2024 Enhanced CPP/QPP Phase II and QPP Changes (Webinar, PDF)

• Quebec Pension Plan, January 2024 - modified QPP administration specific to older workers. Those:

  • aged 65 and over have a new option to stop paying QPP contributions if they are receiving a QPP or CPP retirement pension. The election form was not available at the time of publication.

  • turning 73 in 2024 are no longer obligated to contribute to the QPP. QPP deductions are to stop with the first pay of January 2024 for employees with a 1951 birthyear.

• Fondaction / FTQ eligibility - To qualify for the 30% federal and provincial tax credit for labour-sponsored funds in 2024, an employee’s taxable income in 2022 (Line 299 of the Quebec income tax return) must have been $112,655 or less. Prior to the first payroll of each year, employees are responsible for asking their employer to stop applying the 30% tax credit, if that’s necessary based on their taxable income from 2 years earlier.

• Prince Edward Island - Administratively, an increase to the 2023 basic personal amount (from 12,000 to 12,750) was deferred and will be received by individuals as an adjustment on their 2023 personal tax returns. As a consequence, PEI will be increasing the basic personal amount from 12,000 to 13,500 starting January 2024. Also, effective January 2024, personal income tax rates will be reduced on the first 3 income thresholds, there will be 2 new upper-income thresholds and the 10% surtax will stop being applied.

• Manitoba - increased personal income tax upper thresholds from 36,842 to 47,000, from 79,625 to 100,000 and from > 79,625 to > 100,000 effective January 2024.

• Manitoba Health and Education Levy (MB HE Levy) - a threshold change from 2.0M to 2.25M, and from 4.0M to 4.5M was passed in Bill 14. The March 7, 2023 budget also announced rate reductions for 2024 which have not yet been confirmed.

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