CD 2011-011

• Information Notice to Employees

June 17, 2011

SUBJECT: Tax Changes - Effective July 1, 2011

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, 2011.

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

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

2. BACKGROUND

2.1 The provincial budgets for Nova Scotia, Manitoba, Saskatchewan and New Brunswick contained changes to their respective tax legislation which will be effective July 1, 2011.

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

3. POLICY

3.1 Provincial Tax Credits, Tax Brackets and Rates Effective July 1, 2011.

3.1.1 The following table provides the changes to the Nova Scotia tax credit amounts effective July 1, 2011.

Nova Scotia Personal Tax Credit amounts
	Current Amount	Amount Effective July 1, 2011
Basic personal amount	$8,231	$8,731
Age amount	maximum of $4,019	maximum of $4,263
Pension income amount	maximum of $1,138	maximum of $1,208
Disability amount	maximum of $4,887	maximum of $5,183
Spouse or common-law partner amount	maximum of $6,989	maximum of $7,413
Amount for an eligible dependant	maximum of $6,989	maximum of $7,413
Caregiver amount	maximum of $4,753.	maximum of $5,043
Amount for infirm dependants age 18 or older	maximum of $2,716	maximum of $2,880

3.1.2 Manitoba

The following table provides the changes to the Manitoba tax credit amounts effective July 1, 2011.

Manitoba Personal Tax Credit amounts
	Current Amount	Amount Effective July 1, 2011
Basic personal amount	$8,134	$8,634
Spouse or common-law partner amount	maximum of 8,134	maximum of $8,634
Amount for an eligible dependant	maximum of 8,134	maximum of $8,634

3.1.3 Saskatchewan

The following table provides the changes to the Saskatchewan tax credit amounts effective July 1, 2011.

Saskatchewan Personal Tax Credit amounts
	Current Amount	Amount Effective July 1, 2011
Basic personal amount	$13,535	$14,535
Spouse or common-law partner amount	maximum of $13,535	maximum of $14,535
Amount for an eligible dependant	maximum of $13,535	maximum of $14,535
Child amount	$5,014	$5,514

3.1.4 New Brunswick

The following table provides the changes to the New Brunswick tax rates effective July 1, 2011.

New Brunswick tax brackets and rates
Tax brackets and rates effective January 1, 2011		Tax brackets and rates effective July 1, 2011
Tax brackets	Tax rates (V)	Tax brackets	Tax rates (V)
More than - Not more than		More than - Not more than
Over $120,796	12.70%	Over $120,796	15.90%

4. PROCEDURES/INSTRUCTIONS

4.1 All pay systems will be programmed to automatically reflect the new provincial tax rate for payments dated on or after July 1, 2011.

4.2 Employees who wish to change any of their personal tax credit amounts at source that are not automatically programmed, as mentioned herein, must complete a provincial TD1 form. These forms are available at District Taxation Offices or on the Internet at the following address: TD-e

5. INQUIRIES

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

Original Signed by
Carrie E. Roussin

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

Reference(s): CJA