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  • Using a formula

    The withholding amounts shown in this table can be expressed in mathematical form.

    If you have developed your own payroll software package, you can use the formulas and coefficients outlined below.

    The formulas comprise linear equations of the form y = ax, where:

    • y is the amount to be withheld expressed in dollars
    • x is earnings for the pay period, ignoring any cents
    • a is the value of the coefficient as shown in Table A.
    Table A: Resident or foreign resident rate

     

    Resident (a)

    Foreign resident (a)

    Tax file number

    0.13

    0.325

    No tax file number

    0.47

    0.45

    Rounding of withholding amounts

    The withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

    Accounting software

    Software written in accordance with the formulas in this tax table should be tested for accuracy against the Withholding lookup tool (XLSX 34KB)This link will download a file. The results obtained when using the coefficients in this table may differ slightly from the Withholding lookup tool. The differences result from the rounding of components. Withholding calculated using either method is accepted.

    Last modified: 13 Oct 2020QC 63799