Rates and maximums for 2007

TD1 amounts, prescribed interest rates, automobile rates, WCB insurable earnings and Nunavut payroll tax

TD1 basic personal amounts

Federal $8,929
British Columbia$9,027
New Brunswick$8,239
Newfoundland and Labrador$7,410
Nova Scotia$7,481
Northwest Territories$12,125
Prince Edward Island$7,412

First quarter prescribed interest rate

The prescribe rate for taxable benefits to employees and shareholders from interest-free and low-interest loans is five per cent from January 1, 2007 to March 31, 2007. The rate remains the same from previous quarter.

The interest rate for unpaid source deductions, overdue taxes and insufficient instalments is nine per cent fro the first quarter.

Automobile rates

The taxable benefit and allowance rate for automobile expenses for 2007 remains the same from last year, the Finance Ministry has announced.

For 2007, the general prescribed rate used to calculate the taxable benefit for an employee’s personal use of an employer-provided automobile is 22 cents per kilometer. The rate for employees whose principal job is to sell or lease automobiles is 19 cents per kilometre.

The limit for tax-exempt allowances employers pay to employees is 50 cents per kilometer for the first 5,000 kilometres and 44 cents per kilometer for each additional kilometer. For the Yukon, Northwest Territories and Nunavut, the limit is 54 cents for the first 5,000 kilometres driven and 48 cents for each additional kilometer.

WCB maximum insurable earnings

The following workers’ compensation bodies have announced their maximum assessable/insurable earnings ceiling for 2007:

Jurisdiction2007 Ceiling
British Columbia$64,400
New Brunswick$53,200
Newfoundland and Labrador$48,425
N.W.T and Nunavut$69,200
Nova Scotia$46,700
Prince Edward Island$44,700

Nunavut payroll tax to increase

Effective January 1, 2007, the territorial Payroll Tax Rate will increase from one per cent to two per cent.

The tax is calculated on the gross earnings of employees working in Nunavut, and is paid by the employee, not the employer.

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