Update regarding the basic personal tax exemption in Manitoba that affects you and your employees.
In March 2023, the Manitoba government announced an update to the basic personal tax exemption. The personal tax exemption for employees in Manitoba has increased from $10,855 to $15,000.
As the change was announced after the beginning of the year, Canada Revenue Agency (CRA) guidelines state that it will go into effect July 1st, 2023 and be prorated to include the missed months.
Given employees received a lower exemption for the first six months of the calendar year, the Manitoba personal tax exemption to be used for calculation is $19,145.
If you have a payroll system there should be no action required on your end - to be sure ask your provider.
Your staff may notice a tax calculation difference on their payroll - especially if they have consistent earnings per pay period.
Federal tax exemption or any additional claims are not affected.
If you have any questions or need help adjusting tax exemption levels reach out to us and we will be happy to help.
Greg Libbrecht and the team at Platinum Business Services