webTOD Canadian Payroll Tax Deduction Calculator is simple to use and can quickly calculate the required payroll tax deduction withholdings for most common payroll payments by Canadian employers, including Regular Wages & Salary, Pension, Bonuses, Retroactive Pay and Commission payments.
The calculator has two modes - Quick and Advanced:
- Quick Calculator mode - use this for simple calculations that do not involve additional income or deduction items.
- Advanced Calculator mode - use this for more complex calculations involving additional income or deduction items.
The default calculator mode is the 'Quick Calculator'. Quick mode will allow you to calculate payroll tax deduction amounts for all payroll payment types, but only includes data entry fields for basic calculations without any variables for taxable deductions or other tax credits that can be claimed. For example, a Regular Wages/Salary calculation in Simple Mode will only present data entry fields for the payroll payment date, the province of employment, the federal TD1 Claim Code, the provincial/territorial TD1P Claim Code, the number of pay periods in the year, and the Regular Wages/Salary amount for the current pay period.
webTOD Quick Calculator mode
To toggle between Quick and Advanced mode, click on the 'Advanced Mode' slider at the top right of the calculator.
Location of calculator mode toggle slider
When the toggle button is red, you are now using the 'Advanced Calculator' mode.
Advanced Calculator mode toggle slider appearance
Advanced mode will allow you to calculate payroll tax deduction amounts for all payroll payment types, and includes additional data entry fields for more complex calculations with variables for additional taxable income and deduction amounts, and other tax credits that can be claimed by the employee on their federal TD1 and/or provincial/territorial TD1P.
webTOD Advanced Calculator mode
In both modes (Simple and Advanced), you can select the type of income on which the payroll tax deductions are to be calculated by clicking on the menu icon located in the top left corner of the screen.
Location of menu icon
Clicking on the menu icon will display the menu options, which include the types of income:
The income categories are:
- Regular Salary - use this for calculating deductions on Regular salary and wage income.
- Pension - use this for calculating deductions on Pension income.
- Bonus - use this for calculating deductions on a Bonus payment, whether it is being paid in addition to Regular salary and/or wages, or being paid separately. This calculator should also be used when accrued Vacation Pay related to more than one payroll period is being paid out as a lump-sum payment.
- Retroactive Pay - use this for calculating deductions on a Retroactive Pay Increase, whether it is being paid in addition to the current pay period's Regular salary and/or wages, or being paid separately.
- Commission - use this for calculating deductions on Commission income where the employee is remunerated ONLY by commission. For employees remunerated by a combination of salary/wages and commissions, use the Regular salary and wage income calculator.
Use the following links to view instructions for:
- Quick Calculator - Regular Salary
- Quick Calculator - Pension
- Quick Calculator - Bonus
- Quick Calculator - Retroactive Pay
- Quick Calculator - Commission
- Advanced Calculator - Regular Salary
- Advanced Calculator - Pension
- Advanced Calculator - Bonus
- Advanced Calculator - Retroactive Pay
- Advanced Calculator - Commission