CD 2011-011
Subject: Tax Changes - Effective July 1, 2011
June 17, 2011
1. Purpose
1.1. The purpose of this directive is to provide clients with information relative to the tax legislation changes that are effective July 1, 2011.
1.2. A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Are You a Public Service Employee?" page of the Compensation Sector Web site.
2. Background
2.1. The provincial budgets for Nova Scotia, Manitoba, Saskatchewan and New Brunswick contained changes to their respective tax legislation which will be effective July 1, 2011.
2.2. The explanations in this directive will help compensation advisors provide information to employees concerning the factors that may cause changes to their pay cheques.
3. Policy
3.1. Provincial Tax Credits, Tax Brackets and Rates Effective July 1, 2011.
3.1.1. The following table provides the changes to the Nova Scotia tax credit amounts effective July 1, 2011.
| Current Amount | Amount Effective July 1, 2011 | |
|---|---|---|
| Basic personal amount | $8,231 | $8,731 |
| Age amount | maximum of $4,019 | maximum of $4,263 |
| Pension income amount | maximum of $1,138 | maximum of $1,208 |
| Disability amount | maximum of $4,887 | maximum of $5,183 |
| Spouse or common-law partner amount | maximum of $6,989 | maximum of $7,413 |
| Amount for an eligible dependant | maximum of $6,989 | maximum of $7,413 |
| Caregiver amount | maximum of $4,753. | maximum of $5,043 |
| Amount for infirm dependants age 18 or older | maximum of $2,716 | maximum of $2,880 |
3.1.2. Manitoba
The following table provides the changes to the Manitoba tax credit amounts effective July 1, 2011.
| Current Amount | Amount Effective July 1, 2011 | |
|---|---|---|
| Basic personal amount | $8,134 | $8,634 |
| Spouse or common-law partner amount | maximum of 8,134 | maximum of $8,634 |
| Amount for an eligible dependant | maximum of 8,134 | maximum of $8,634 |
3.1.3. Saskatchewan
The following table provides the changes to the Saskatchewan tax credit amounts effective July 1, 2011.
| Current Amount | Amount Effective July 1, 2011 | |
|---|---|---|
| Basic personal amount | $13,535 | $14,535 |
| Spouse or common-law partner amount | maximum of $13,535 | maximum of $14,535 |
| Amount for an eligible dependant | maximum of $13,535 | maximum of $14,535 |
| Child amount | $5,014 | $5,514 |
3.1.4. New Brunswick
The following table provides the changes to the New Brunswick tax rates effective January 1, 2011.
| Tax brackets | Tax rates (V) |
|---|---|
| Over $120,796 | 12.70% |
The following table provides the changes to the New Brunswick tax rates effective July 1, 2011.
| Tax brackets | Tax rates (V) |
|---|---|
| Over $120,796 | 15.90% |
4. Procedures and Instructions
4.1. All pay systems will be programmed to automatically reflect the new provincial tax rate for payments dated on or after July 1, 2011.
4.2. Employees who wish to change any of their personal tax credit amounts at source that are not automatically programmed, as mentioned herein, must complete a provincial TD1 form. These forms are available at District Taxation Offices or on the Internet at the following address: Forms listed by form number.
5. Inquiries
5.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Carrie E. Roussin
Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): CJA
Information Notice to Employees
The purpose of this information notice to employees is to provide you with information relative to the tax legislation changes that are effective July 1, 2011.
The following provincial budgets contained changes to the respective tax legislation which will be effective July 1, 2011.
Nova Scotia
The following table provides the changes to the Nova Scotia tax credit amounts effective July 1, 2011.
Nova Scotia Personal Tax Credit amounts
| Current Amount | Amount Effective July 1, 2011 | |
|---|---|---|
| Basic personal amount | $8,231 | $8,731 |
| Age amount | maximum of $4,019 | maximum of $4,263 |
| Pension income amount | maximum of $1,138 | maximum of $1,208 |
| Disability amount | maximum of $4,887 | maximum of $5,183 |
| Spouse or common-law partner amount | maximum of $6,989 | maximum of $7,413 |
| Amount for an eligible dependant | maximum of $6,989 | maximum of $7,413 |
| Caregiver amount | maximum of $4,753. | maximum of $5,043 |
| Amount for infirm dependants age 18 or older | maximum of $2,716 | maximum of $2,880 |
Manitoba
The following table provides the changes to the Manitoba tax credit amounts effective July 1, 2011.
| Current Amount | Amount Effective July 1, 2011 | |
|---|---|---|
| Basic personal amount | $8,134 | $8,634 |
| Spouse or common-law partner amount | maximum of 8,134 | maximum of $8,634 |
| Amount for an eligible dependant | maximum of 8,134 | maximum of $8,634 |
Saskatchewan
The following table provides the changes to the Saskatchewan tax credit amounts effective July 1, 2011.
| Current Amount | Amount Effective July 1, 2011 | |
|---|---|---|
| Basic personal amount | $13,535 | $14,535 |
| Spouse or common-law partner amount | maximum of $13,535 | maximum of $14,535 |
| Amount for an eligible dependant | maximum of $13,535 | maximum of $14,535 |
| Child amount | $5,014 | $5,514 |
New Brunswick
The following table provides the changes to the New Brunswick tax rates effective January 1, 2011.
| Tax brackets | Tax rates |
|---|---|
| Over $120,796 | 12.70% |
The following table provides the changes to the New Brunswick tax rates effective July 1, 2011.
| Tax brackets | Tax rates |
|---|---|
| Over $120,796 | 15.90% |
The new provincial tax rate for payments dated on or after July 1, 2011 will be reflected automatically.
Employees who wish to change any of their personal tax credit amounts at source that are not automatically programmed, as mentioned herein, must complete a provincial TD1 form. These forms are available at District Taxation Offices or on the Internet at the following address: Forms listed by form number.
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