The Canada Revenue Agency (CRA) published the 2024 online statutory deductions calculator, PDOC.


The latest version of PDOC features the following enhancements:


CPP Regulations Update: Under Canada Pension Plan (CPP) Regulations, Subsection 5.1 (1), earnings between the Year’s Maximum Pensionable Earnings (YMPE) and the Year’s Additional Maximum Pensionable Earnings (YAMPE) will be subject to a new second additional CPP contributions, termed CPP2.


Calculator Enhancements: Formulas for calculating CPP2 contributions and corresponding tax deductions have been added to the calculator for improved accuracy.


Results Page Overhaul: The results page now displays CPP2/QPP2 contributions and deductions related to these additional CPP/QPP (Quebec Pension Plan) contributions.


Taxable Income Display for Salary: The results page has been updated to show the taxable income for each pay period, providing a more detailed financial perspective.


New Field for 2023 CPP Contributions Verification: A 'Number of pensionable months' field has been added to verify CPP contributions and pensionable earnings for employees with less than 12 pensionable months.


Quebec-Specific Update: A new section titled ‘Quebec Taxable Benefits and Allowances Provided to Your Employee’ has been included in the taxable benefits and allowances section (step 2), enhancing the assessment of taxable elements in Quebec.

PDOC is an online tool that helps employers calculate federal, provincial (except for Quebec), and territorial payroll statutory deductions.


AUTOMOBILE DEDUCTION LIMITS FOR 2024 ANNOUNCED The maximum deduction for tax-exempt allowances provided by employers to employees who utilize their personal vehicles for work will rise by two cents. This increase brings the rate to 70 cents per kilometre for the initial 5,000 kilometres and 64 cents for each kilometre thereafter. In the territories, the deduction limit will increase by two cents, reaching 74 cents per kilometre for the first 5,000 kilometres and 68 cents for subsequent kilometres.


The standard prescribed rate for calculating the taxable benefit of employees for the personal part of automobile expenses covered by their employers will remain at 33 cents per kilometre in 2024. For employees primarily involved in car sales or leasing, the rate for calculating their taxable benefit will also stay the same, at 30 cents per kilometre for 2024.


Employers can effectively manage the above changes to ensure compliance and should consider the following actions:

· Communicate the changes to their employees

· Update their automobile mileage reimbursement policies

· Maintain accurate records

· Educate employees on taxable benefits



The CRA is in the process of updating its website and Form T2200 for the 2023 tax year. The revised form, available by the end of January 2024, will simplify the process for employees seeking deductions for home office expenses. In 2023, eligible employees will need to utilize the detailed method for claiming home office expenses, akin to the pre-pandemic approach. Unlike the COVID-19 pandemic years (2020-2022), where a temporary flat rate method was applicable, this method will not be available for the 2023 tax year. CRA aims to streamline the process for taxpayers while ensuring compliance with changing work arrangements.


Employers should:

· Stay informed

· Communicate with employees

· Provide documentation to employees who are claiming home office expenses using the detailed method.

· Evaluate and update company policies related to remote work and home office expenses to align with the CRA's new guidelines for the 2023 tax year.

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