ARCHIVED CD 2009-014

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June 29, 2009

SUBJECT: Tax Changes -- Effective July 1, 2009


1.1 The purpose of this directive is to provide clients with information relative to the tax legislation changes that are effective July 1, 2009.

1.2 An information notice to employees concerning the above subject has been included with this Compensation Directive and will also be posted in the "Who are you? - Public Service Employee" page of the Compensation Sector Web site.


2.1 The following change to the provincial tax legislation was introduced in the New Brunswick provincial budget and will be effective July 1, 2009.

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


3.1. Provincial Tax Brackets and Rates effective July 1, 2009

New Brunswick

The following table provides the changes to the New Brunswick tax rates effective July 1, 2009.

New Brunswick Tax Brackets and Rates
Tax brackets and rates effective January 1, 2009 Prorated Tax brackets and rates effective July 1, 2009
Tax brackets Tax rates Tax brackets Tax rates
More than - Not more than   More than - Not more than  
$ 0 to $35,707 10.12% $ 0 to $35,707 9.18%
$35,707 to $71,415 15.48% $35,707 to $71,415 13.52%
$71,415 to $116,105 16.8% $71,415 to $116,105 15.2%
Over $116,105 17.95% Over $116,105 16.05%

3.2. Multiple Tax Adjustment Factors

Effective July 1, 2009, the Canada Revenue Agency (CRA) has provided us with new Tax Adjustment Factors. 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.

Federal tax brackets
Tax brackets and rates effective July 1, 2009
More than - Not more than Tax
$0 to $41,200 15% 90% 93% 69%
$41,200 to $82,399 22% 103% 96% 77%
$82,399 to $126,264 26% 106% 95% 89%
Over $126,264 29% 107% 94% 91%


4.1 All pay systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2009.


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
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

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