Where do we change the federal tax rate for Canada Tax Tables?
CRA has reduced the federal tax rate by 1% from 15% to 14% for income bracket 0-57375 effective July 1 2025. While the verbiage says PROPOSED LEGISLATION, the PDOC has been updated to reflect this change and the National Payroll Institute has confirmed with our staff that this federal legislation is effective July 1, 2025.
When we manually changed the basic federal rate to 0.014 effective July 1 2025 on the Canadian Tax Tables, our weekly employees recalculated with HIGHER Tax deduction rather than lower tax deduction despite the taxable gross being the same??? Is there another tax field we need to change??