News

If you have any companies set up in Easypay that have employees in B.C., N.L. or P.E.I.:

• Wait until your last pay period of June 2026 has been CLOSED/POSTED before installing the patch.
• If you have employees in Newfoundland and Labrador:
  After you install the patch, open Easypay and run Utilities > TD1 Update once for each company that you have in Easypay. This will update the TD1 amounts for employees in that province.

The patch is optional if you do not have employees in the affected provinces.

The patch is available on the Downloads page.

The CRA has announced income tax changes that will take effect on July 1, 2026, for these provinces:

• British Columbia
• Newfoundland and Labrador
• Prince Edward Island

There are no other federal, provincial or territorial changes.

An Easypay software patch that includes the income tax changes will be available on June 19, 2026. A link to the patch will be posted on this News page.

Here are the details:

• British Columbia:
  1. For income under $50,363, the tax rate increased from 5.06% to 5.60% effective January 1, 2026. Since employees have been taxed at the rate of 5.06% for the first six months of the year, a prorated tax rate of 6.14% will apply for the remaining six months, commencing with the first payroll in July.
  2. For 2026 and subsequent years, the B.C. tax reduction credit has been increased to $690. A prorated basic reduction amount of $805 will apply for the remaining six months of 2026. (The B.C. tax reduction credit is a non-refundable tax credit that reduces B.C. income tax for individuals with net incomes below $44,952.)
  
  
• Newfoundland and Labrador:
  • The basic personal amount has been increased from $11,188 to $13,094 effective January 1, 2026. Since employees have received a lower basic personal amount for the first six months of the year, a prorated basic personal amount of $15,000 will apply for the remaining six months, commencing with the first payroll in July.
  • If an employee has submitted a TD1NL prior to July 1, 2026, with the lower basic personal amount, employers do not need a new TD1NL to change it to the prorated amount.
  
  
• Prince Edward Island:
  • A new income tax bracket has been introduced for taxable income above $200,000. For 2026 and subsequent years, taxable income above $200,000 is subject to a 20% tax rate. Since employers have used a lower tax rate for the first six months of the year, a prorated rate of 21% will apply for the remaining six months, commencing with the first payroll in July.

When submitting a T4 or T4A XML file to the CRA, you might receive this error message:
Error: We are unable to process your submission because the T619 electronic transmittal record contains either empty tags or is missing mandatory tags.

To avoid this error, whenever you are ready to create your T4 or T4A XML file, please follow the steps listed here: T4 XML file: How to avoid a CRA error message