How to use PDOC – For salaries

Information

Throughout the Payroll Deductions Online Calculator (PDOC), additional information about terms is available through the help buttons. If you select a link in the help text, a new browser window will open.

The information on the screens are customized for each province and/or territory.

Step-by-Step Salary Calculation

Welcome Page

The following options are available on the Payroll Deductions Online Calculator landing page:

Note: You can only do one type of calculation at a time.

  1. The "Salary" icon is selected by default.
  2. Select the "Next" button to start a new payroll deductions calculation.

Step 1: Employee Information

When you select the "Salary" icon and "Next" button, you will be directed to Step 1 of the salary calculation.

  1. The employee's name and/or the employer's name. These are optional fields.

    Note: If you enter the employee's name, it will be automatically included in the file name when you save the result at the end of the calculation. The application will accept a blank field.

  2. Select the province or territory of employment (normally where your business is located or where the employee reports for work). This is a required field. For more information, consult Determine the province of employment (POE) - Canada.ca.
  3. Select the pay period frequency. This will help estimate the annual income of the employee for calculation purposes. This is a required field.
  4. Select the date the employee is paid. This is a required field.

    Note: The employment payment date will determine the employee's income tax rate, as well as CPP/QPP and EI related figures, in order to generate the payroll deduction result. This date will also be included in the file name when you save the result at the end of the calculation.

  5. Select the "Next" button to continue or the "Previous" button to change the type of calculation. All of the information will be carried forward to the applicable screens as necessary.

Note: If the "Province or territory of employment", the "Pay period frequency", and/or the "Date the employee is paid" fields are not selected, an error message will display after the "Next" button is selected.

Step 2: Gross Income and Additional Options

  1. Enter the "Salary or wages income" (without deductions) for the pay period. This is a required field. If you do not enter an amount, an error message will display after the "Next" button is selected.
  2. Enter the vacation pay amount for the pay period, if applicable.
  3. Additional Options - of the following options, select the one that applies: 

Note: Only one option can be selected at a time. The "No bonus or retroactive payment" option is selected by default.

Select all other taxable income and benefits and/or other deductions that apply to this pay period. The options available are:

Taxable benefits and allowances

Tax deductions, tax reductions and non-refundable tax credit amounts

Step 3: Additional Information

TD1 Federal and TD1 Provincial Tax Credit Return:

Apply personal credits by using the total claim amount from the TD1 forms or the claim codes option. If you are using the claim codes option then see the following steps.

  1. Select the range of the total amount claimed from line 13 of federal Form TD1. If you do not select a range, the default will be the range that includes the federal basic personal amount allowed for that year.
  2. Enter in the applicable field any additional tax deductions requested by the employee from the back of Form TD1.
  3. Select the range of the total amount claimed from the provincial or territorial Form TD1. If you do not select a range, the default will be the range that includes the provincial or territorial basic personal amount allowed for that year.

Canada Pension Plan (CPP) or Quebec Pension Plan (QPP):

Select one of the following options:

If you selected "In (year selected), the employer deducted QPP contributions (or CPP contributions if Quebec is the province of employment) before transferring employee to another province or territory" on the previous screen:

Employment Insurance (EI):

  1. Select only one of the following options:
    • EI maximum annual premium has been reached: Select this option if the employee has reached the maximum employee premium amount for the year. This will ensure the employee and employer do not contribute more than the maximum annual premiums for the year.

      Note: Do not include any EI premium that a previous employer may have deducted.

    • EI exempt: Choose this option when processing a calculation for types of income not subject to EI premiums. When you select the EI exempt option, the tax amount will rise accordingly because the EI credit is not applied to this type of income.
    • QPIP exempt (Quebec only): Select this option if the type of income is not subject to QPIP premiums. The tax amount will rise accordingly because the corresponding QPIP credit is not applied to the tax calculation.
    • EI and QPIP exempt (Quebec only): Select this option if the type of income is not subject to EI and QPIP premiums. The tax amount will rise accordingly because EI and QPIP credits are not applied to the tax calculation.
    • Year-to-date amount (from your records): Select this option if the employee's maximum EI premiums or maximum insurable earnings have not yet been reached. Enter the year-to-date insurable earnings amount and/or EI premiums deducted from your records. This will ensure the employee and employer do not contribute more than the maximum annual premiums for the year. Based on the data you enter, the system will generate the total amount on the Result page to be used next time.
    • Employer's Employment Insurance (EI) Premium Rate: The employer's contribution of employment insurance premiums is an amount equal to 1.4 times the total of the employee's premiums, unless a reduced rate applies.
    • Select "Calculate" to proceed to the Employer and Employee Result pages, or select "Previous" to change the information entered in the previous steps.

Payroll Deductions Result – Salary

The results for "Employee Deductions" and "Employer Remittances Summary" are displayed on two separate screens based on the information that you entered.

Employee Payroll Deductions Result:

Employer Remittance Summary:

To print and/or save the employee (EE) and employer (ER) results in PDF format:

To print and/or save the combined employee deduction result and employer remittance summary in PDF format:

To make changes to the current calculation:

To do another calculation:

To select a different calculation type:

Page details

Date modified: