Notice: The Payroll Department has finalized the 2014 T4 and T4A Statements of
Remuneration Paid. These tax slips are now available online through
Faculty and Staff Self Service at www.msp.ubc.ca
UBC Payroll deducts taxes from your paycheques according to rules, legislation and computer formulas provided by the Canada Revenue Agency(CRA).
See CRA's list of what is considered taxable.
Reducing your taxes: In some instances, employees can adjust their taxation rates by submitting a TD1 form. This form allow the claiming of certain deductions.
Increasing your taxes: Alternatively, the TD1 form can be used to request an additional flat amount of tax to be deducted from each paycheque.
If you adjust your basic claim amount, it is your responsibility to review it (current exemptions can be found on your pay statemtnt) each year and submit a new TD1 if your circumstances change.
Canada Pension Plan and Employment Insurance
Both employees and employers contribute to the Canada Pension Plan (CPP) and to Employment Insurance(EI) on employment earnings. Your portion is deducted directly from your paycheque, and UBC pays the employer portions.
These deductions are mandatory on employment earnings - regardless of the citizenship of the employee.
CPP and EI have maximum annual premiums. Once those thresholds are reached, no deductions are made for the remainder of the year. Employees with earnings high enough for this threshold will see CPP and EI begin deducting again each January, until the threshold is reached again.
Exemption to CPP
Employees already collecting their CPP can stop their CPP deductions by submitting a copy of their letter of acceptance from Service Canada to the Payroll office
Thinking of Collecting CPP? CPP has changed their penalties and bonuses on early and late adopters.
Tax Slips Online
UBC Financial Services Payroll issues slips online through Faculty and Staff Self Service. These PDF slips can be used to calculate RSP contribution room, are identical to the printed form and are accepted by CRA when filing your taxes. How to download your Tax Slip
Note: If you choose PDF tax slips, you will not receive a printed slip in future.
UBC is required to withold taxes from Non-Resident Employees in the same manner as Canadians. See the Canada Revenue Agency's Income Tax Information Circular for more information.
The exception to this is payments to residents of countries that have a reciprocal tax treaty with Canada. However, exemptions based on these treaties must be approved by the Canada Revenue Agency on an individual basis, and the waiver presented to UBC's Payroll department. See CRA's information on tax treaties.
Non residents are also required to have Employment Insurance and Canada Pension Plan (CPP) deducted. See CRA's site for more information.
Scholarship and Fellowships
Scholarships and Fellowships - why tax is taken on Scholarship and Fellowships.
Rules for Tax Deductions and Exemptions
Many of the things UBC pays on behalf of employees are taxable benefits - that is, the dollar value what the University pays is considered taxable income of the employee: List of Taxable Benefits. Administrators should also note how to report taxable benefits to Payroll.