2025 Statutory Deductions Rates Process Guide

Modified on Tue, 17 Dec at 3:38 PM

2025 Statutory Deductions Rates Process Guide

Required K212 HRP Setup for Statutory Deductions Rates effective for Jan 1, 2025

For: All Boards/Districts

Last Updated: 12/13/2024

This document is provided to assist boards/districts with updating Statutory Deduction values in K212 HRP. Please note that while these figures have been validated on the various sources’ websites, boards are responsible for ensuring these values are correct and they are responsible for maintaining this information throughout the year, if there are any changes. These values should be updated prior to running the first pay of the New year.

IMPORTANT NOTE: For the purpose of this document, jurisdictional information (provincial) in screenshots such as Tax Brackets & Provincial Personal amount/Indexing Factor are in Ontario figures.

Provincial-based figures are provided in tables for Alberta and BC

FEDERAL TAX DATA Module

The screen below shows the new tax rates and figures for the Year 2025.

PAYROLL > BOARD > FEDERAL TAX DATA

Find > Current 2024 Tax Record > Input End Date = 2024/12/31

**Once complete choose Save to close the current record**

Provincial Tax Credit Information

	Basic Amount	Indexing Rate	Maximum Provincial Tax Reduction
Federal	16,129.00	1.027	-
Ontario	12,747.00	1.028	294.00
Alberta	22,520.00	1.029	-
British Columbia	12,932.00	1.028	562.00

Note: Please see the bottom of the document to reference Table 8.2 in CRA T4127-25e

Canada Employment Credit (CEA) = 1,471

DUPLICATE & UPDATE START DATE

Right Click > Duplicate the closed 2024 record to create a new record with Start Date = 2025/01/01

**Fill in the required data as shown**

Note: Federal and Provincial Indexing Factor fields must be completed only when automated indexing is chosen.

Leave Federal & Provincial Indexing Factor fields blank when automated indexing is not to be used. For accurate calculations, please enter the proper factor value (Example: 2.4% = 1.024 – Index at 102.4% of the previous year’s credits)

CPP, EIC, WSIB, EHT Module

The screen below shows the new CPP and EIC Rates for the Year 2025.

PAYROLL > BOARD > CPP, EIC, WSIB, EHT

Find > Current 2024 Record > Input End Date = 2024/12/31

**Once complete choose Save to close the current record**

DUPLICATE & UPDATE START DATE

Right Click > Duplicate the closed 2024 record to create a new record with Start Date = 2025/01/01

**Fill in the required data as shown**

NOTE: YAMPE = $81,200 and CPP Employee Rate 2 = 4%

WSIB (WCB): Only complete if required. Check your Province's rates.

PENSION DEDUCTION Module

The screen below shows the new Pension rates for Year 2025.

Follow these steps to update ALL Pension Code (Ex. TSC/TSCRET, OMERS/OMERSRET) records.

PAYROLL > BOARD > PENSION DEDUCTIONS

Find > Current 2024 Record > Input End Date = 2024/12/31

**Once complete choose Save to close the current record**

IMPORTANT NOTE: Employee %1 and Employee % 2 is only "reversed" for TSC.

OMERS, MPP, etc need to be Employee %1 = Lower Rate, and Employee %2 = Higher Rate.

DUPLICATE & UPDATE START DATE

Right Click > Duplicate the closed 2024 record to create a new record with Start Date = 2025/01/01

**Fill in the required data as shown**

Note: Values that may be updated from the previous year are Employee 1%, Employee 2% and Annual Maximum Pensionable Earnings fields.

Employer %1 & Employer %2 is only required if the Employer Share is different from the Employee Share
The other fields may be board/district specific (Example: Liability/Expense Account GL)

IMPORTANT NOTE: Employee %1 and Employee % 2 is only "reversed" for TSC.

OMERS, MPP, etc need to be Employee %1 = Lower Rate, and Employee %2 = Higher Rate.

CREATE STATUTORY DEDUCTIONS Module

PAYROLL > YEAR END > CREATE STATUTORY DEDUCTIONS

Specify Date for Closing Latest Statutory Deduction Records = 2023/12/31 > TAB > Greyed out fields will automatically populate from the Federal Tax Data module.

**Once complete choose Submit to process the automated job**

Note: The standard TD1 and Provincial TD1 amounts will be automatically populated from the Federal Tax Data module after clicking TAB following the date entry.

Tax Bracket Data by Province

Federal	A	0	57,375	114,750	177,882	253,414
	R	0.150	0.205	0.260	0.290	0.330
	K	0	3,156	9,467	14,803	24,940
Ontario	A	0	52,886	105,775	150,000	220,000
	R	0.0505	0.0915	0.1116	0.1216	0.1316
	KP	0	2,168	4,294	5,794	7,994
Alberta	A	0	151,234	181,481	241,974	362,961
	R	0.10	0.120	0.130	0.140	0.150
	KP	0	3,025	4,839	7,259	10,889
British Columbia	A	0	49,279	98,560	113,158	137,407	186,306	259,829
	R	0.0506	0.0770	0.1050	0.1229	0.1470	0.1680	0.2050
	K	0	1,301	4,061	6,086	9,398	13,310	22,924

Additional Notes & Resources

T4127-25e (HTML): T4127 Payroll Deductions Formulas - Canada.ca

T4127-25e (PDF): t4127-01-25e.pdf

CPP Contribution Rates, Maximums and Exemptions: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html

CPP2 Contribution Rates and Maximums: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/making-deductions/second-additional-cpp-contribution-rates-maximums.html

EI Premium Rates & Maximums: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html

WSIB Premiums and Rates: https://www.wsib.ca/en/2024premiumrates#:~:text=The%20maximum%20insurable%20earnings%20ceiling,Workplace%20Safety%20and%20Insurance%20Act.

PA Max Accrued: https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html

T4127-25e Table 8.1: