Canada Taxes: Federal

Tax and Garnishment Tables – Notice 2025-07

Version
Notice 2025-07
Release Date
04/05/2025

Canadian Regular/Bonus Federal Tax Calculation mis-calculating a F5B and F5A factor when eCPP is calculated on the check

When a Bonus is paid on the same check as the Normal Earnings and employee also has eCPP calculated, 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 accurately calculate the factor F5A and F5B when employee has passed the first CPP limit and is paid bonus on the same check as normal earnings. GPTCI-61311