Canada Taxes: Federal

Tax and Garnishment Tables – Notice 2025-05

Version
Notice 2025-05
Release Date
03/15/2025

Canadian Regular/Bonus Federal Tax Calculation mis-calculating a F5B and F5A factor

When a Bonus is paid on the same check as the Normal Earnings the Federal Tax Calculation is calculating an F5B amount on both the Regular Earnings , and the Bonus earnings when it should only be applicable to the Bonus Earnings,

The F5B should only be calculated on the bonus amount., while the F5A amount that was calculated on the Normal Earnings should be “used” by the Bonus tax formula it should not be re-calculated and stored.

This change will remove the calculation of the F5B amount from the Regular Tax Calculation., and remove the calculation of the F5A amount from the Bonus Calculation, instead it will use the F5A amount from the Regular Tax Calculation. GPTCI-45692