CD 2013-012

Subject: Tax Changes - Effective July 1, 2013

July 4, 2013

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, 2013.

1.2. A notice of information to employees concerning the above has been included with this compensation directive and will also be posted on the "Are You a Public Service Employee" page of the Compensation Sector Web site.

2. Background

2.1. The following change to the provincial tax legislation was introduced in the New Brunswick provincial budget and will be effective July 1, 2013.

2.2. The explanations in this directive will assist compensation advisors in providing information to employees concerning the factors that may cause changes to their pay cheques.

3. Policy

3.1. New Brunswick Tax Brackets and Rates effective July 1, 2013

The following table provides the changes to the New Brunswick tax rates, effective July 1, 2013.

New Brunswick Tax Brackets and Rates effective January 1, 2013
Tax brackets Annual taxable income ($)
From – To
Tax rates
$0.00 to $38,954.00 9.10%
$38,954.01 to $77,908.00 12.1%
$77,908.01 to $126,662.00 12.4%
$126,662.01 and over 14.3%
New Brunswick Tax Brackets and Rates effective July 1, 2013
Tax brackets Annual taxable income ($)
From – To
Tax rates
$0.00 to $38,954.00 9.68%
$38,954.01 to $77,908.00 14.82%
$77,908.01 to $126,662.00 16.52%
$126,662.01 – and over 17.84%

3.2. Multiple Tax Adjustment Factors

The Canada Revenue Agency (CRA) has provided us with revised tax adjustment factors for the province of New Brunswick, effective July 1, 2013. These tax adjustment factors are used to calculate income tax deducted at source for those employees who work in Quebec and reside in Ontario, New Brunswick or Nova Scotia.

Multiple Tax Adjustment Factors Effective January 1, 2013
Annual taxable income ($)
From – To
Nova Scotia New Brunswick Ontario
$0.00 to $53,600.00 95% 92% 67%
$53,600.01 to $68,300.00 105% 91% 72%
$68,300.01 to $79,600.00 106% 90% 75%
$79,600.01 to $97,500.00 107% 90% 80%
$97,500.01 and over 104% 85% 86%
Multiple Tax Adjustment Factors Effective July 1, 2013
Annual taxable income ($)
From – To
Nova Scotia New Brunswick Ontario
$0.00 to $53,600.00 95% 97% 67%
$53,600.01 to $68,300.00 105% 101% 72%
$68,300.01 to $79,600.00 106% 101% 75%
$79,600.01 to $97,500.00 107% 102% 80%
$97,500.01 and over 104% 100% 86%

4. Procedures and Instructions

4.1. Compensation systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2013.

5. Inquiries

5.1. Any inquiries on the information contained in this directive should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
O. Ramsay

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9007-7, 9007-8

Information Notice to Employees

The purpose of this notice is to provide you with information relative to the tax legislation changes that are effective July 1, 2013.

The provincial budget for New Brunswick contained changes to their respective tax legislation which will be effective July 1, 2013.

The following table outlines the changes in provincial tax rates which will be used to calculate the income tax deduction at source.  New Brunswick employees may see a decrease in their net pay as a result of this tax increase, beginning the first pay of July 2013.

New Brunswick Tax Brackets and Rates effective January 1, 2013
Tax brackets Annual taxable income ($)
From – To
Tax rates
$0.00 to $38,954.00 9.10%
$38,954.01 to $77,908.00 12.1%
$77,908.01 to $126,662.00 12.4%
$126,662.01 – and over 14.3%
New Brunswick Tax Brackets and Rates effective July 1, 2013
Tax brackets Annual taxable income ($)
From – To
Tax rates
$0.00 to $38,954.00 9.68%
$38,954.01 to $77,908.00 14.82%
$77,908.01 to $126,662.00 16.52%
$126,662.01 – and over 17.84%

Multiple Tax Adjustment Factors

The Canada Revenue Agency (CRA) has provided us with revised tax adjustment factors for the province of New Brunswick, effective July 1, 2013. These factors are used to calculate income tax deducted at source for those employees who work in Quebec and reside in Ontario, New Brunswick or Nova Scotia.

Multiple Tax Adjustment Factors Effective January 1, 2013
Annual taxable income ($)
From – To
Nova Scotia New Brunswick Ontario
$0.00 to $53,600.00 95% 92% 67%
$53,600.01 to $68,300.00 105% 91% 72%
$68,300.01 to $79,600.00 106% 90% 75%
$79,600.01 to $97,500.00 107% 90% 80%
$97,500.01 and over 104% 85% 86%
Multiple Tax Adjustment Factors Effective July 1, 2013
Annual taxable income ($)
From – To
Nova Scotia New Brunswick Ontario
$0.00 to $53,600.00 95% 97% 67%
$53,600.01 to $68,300.00 105% 101% 72%
$68,300.01 to $79,600.00 106% 101% 75%
$79,600.01 to $97,500.00 107% 102% 80%
$97,500.01 and over 104% 100% 86%

Compensation systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2013.

Any request for information regarding the foregoing should be addressed to your compensation advisor.