The changes to the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) for 2014 are given below.

Variable E

The indexation factor used to calculate the value of personal tax credits for 2014 is 0.97%.

Variables F and F₂

The voluntary retirement savings plan (VRSP) contribution and the pooled registered pension plan (PRPP) contribution have been added to variables F and F₂. For more information, see section 2.13 of the Guide for Employers (TP-1015.G-V) for 2014.

Variables H, H₁ and H₂ – Deduction for employment income

For 2014, the maximum deduction for employment income has been increased from $1,100 to $1,110. Consequently, the maximum amount of variables H, H₁ and H₂ has been increased from $1,100 to $1,110.

Variable K – The constant for adjusting the income tax rate

For 2014, the income tax rates applicable to taxable income brackets remain unchanged and the income thresholds for these brackets have been indexed. Specifically,

• the 16% rate applies to taxable income of $41,495 or less (previously $41,095); 
• the 20% tax rate applies to taxable income of more than $41,495, but not more than $82,985 (previously $82,190); 
• the 24% tax rate applies to taxable income of more than $82,985, but not more than $100,970 (previously $100,000); 
• the 25.75% applies to taxable income of more than $100,970.

Consequently, the values of variable K are now $1,659 (increased from $1,644), $4,979 (increased from $4,931) and $6,746 (increased from $6,681).

Variable M – QPP

The QPP contribution rate has been increased from 10.20% to 10.35% for 2014, which corresponds to a rate of 5.175% for an employee and of 5.175% for an employer. In addition, the maximum pensionable earnings for the purposes of the QPP have been increased from $51,100 to $52,500. Variable M has therefore been increased from $2,427.60 to $2,535.75.

Variables N and N₁ – QPIP

For 2014, the maximum insurable earnings subject to QPIP premiums have been increased from $67,500 to $69,000. The employee premium rate remains 0.559% and the employer premium rate remains 0.782%. Consequently, variable N has been increased from $377.33 to $385.71 and variable N₁ has been increased from $527.85 to $539.58.

Variable Z – Health contribution

For 2014, the net income thresholds, the rates and the amounts used to calculate the value of the health contribution (variable Z) remain unchanged.