Payroll Taxes and CPP Changes for 2025 - NAV 2016

This guide reflects the tax changes recently announced which will be effective January 1, 2025. Once you have performed all the modifications described in this article we recommend using the Payroll Deductions Online Calculator - PDOC, to verify the results from your payroll journal. Please remember when doing so to select the correct amount of Pay Periods in the year (26 or 27).

TABLE OF CONTENTS

• Tax Changes Import
• Manual Configuration
• Federal and Provincial table
• CPP and EI table
• Tax Credits 
• Claim amounts by territory table
• Support
• Sources

Tax Changes Import

This year we have prepared a Configuration Package so you can save time updating the brackets. In case you would like to do it manually please skip to the section Manual Configuration. To import and apply the configuration package follow the instructions below:

1. Download the attachment at the bottom of this article.
2. Go to NAV and search for Configuration Packages.
3. On the action bar, click Import Package
   
4. Open the file you just downloaded and wait for the import to finish
5. Select the configuration package called Brackets and verify that it contains 52 records as below. If that's the case click Apply Package and then Yes.
   
   
6. You should receive a pop-up confirmation message indicating that 10 tables were processed and no errors were found. If that's not the case, please contact Support to investigate it.
   

Once you have completed this process the only step missing would be to perform the Mass Tax Info Update for all employees as described below.

Manual Configuration

NOTE: FOR EACH OF THE FOLLOWING CHANGES, WE WANT TO CREATE A COPY OF THE 2024 CONFIGURATION WITH A NEW EFFECTIVE DATE OF 01/01/2025

As an example:

1. In NAV 2016 and previous versions, navigate to Brackets
2. Find FED TAX and select it.
3. Use the buttons at the Action Bar to Copy
   
   
4. Create a copy with Effective Date 01/01/2025
   
5. Select the newly created Bracket, and click Navigate > Details to modify the records as indicated in the table below.
6. Repeat this process for all the brackets mentioned in the tables below.

Federal and Provincial table

If your province W/H brackets are missing please create a ticket with Support so we can update the data.

CPP and EI table

Tax Credits 

In order to update the Tax Credit amounts for all employees we need to follow the next steps: 

1. In NAV, search for Mass Employee Tax Info Update.
2. If you want to first run a test report leave the option Test Print enabled, if not, disable it.
3. Enter the effective date of 01/01/25, reporting authority and amounts for the old and new credits.
   
   
4. Click Print and select PDF.
5. Check any employee's Tax Auth. Info and verify the 2025 records are listed.
   
   
6. Modify manually any employees Tax Auth. Info where the TD1 Form Claim Amount differs from the Basic Personal Amount.

Claim amounts by territory table

Support

Our support team is available for any questions or concerns that may arise during this process. If you encounter discrepancies while comparing results to the Payroll Deductions Online Calculator - PDOC please create a Support ticket and schedule a call with our Support Engineer, Gianfranco Montesanto, using the following link:

Select a Date & Time - Calendly

Sources

Payroll Deductions Formulas - 120th Edition Effective January 1, 2025 - Canada.ca 

Payroll Deductions Formulas - 120th Edition (Upcoming changes) Effective January 1, 2025 - Canada.ca 

Payroll Deductions Online Calculator