(b) “employee”
means any person receiving remuneration who reports for work at an
establishment of an employer in Alberta;
(c) “relevant
fraction” means the fraction obtained when the relevant percentage is divided
by the sum of 1 and the relevant percentage;
(d) “relevant
percentage” means
(i) with respect to 1986 and prior taxation years, the percentage
specified in section 3(3) of the Act to be used for computing tax payable under
section 3 of the Act for that year,
(ii) with respect to the 1987 taxation year, the relevant percentage
for the period in the year in which the payment is made specified in section
3.2, and
(iii) with respect to 1988 and subsequent taxation years, the
percentage specified in section 3.02(3) of the Act to be used for computing the
basic tax payable under section 3.02 of the Act for that year.
(2) Subject
to subsection (1), those expressions defined in subsection 100(1) of the
federal regulations and used in these Regulations have the same meaning as is
given to them by subsection 100(1) of the federal regulations.
(3) Subsections 100(2) to (4) of the
federal regulations apply to a person to whom these Regulations apply.
AR 317/72
s1;52/81;387/85;498/87
2 Any person who makes a payment described in
section 18(1) of the Act shall deduct or withhold from that payment and remit
to the Receiver General of Canada the amount, if any, that is determined in
accordance with these Regulations.
AR 317/72 s2;387/85
3(1) Except as otherwise provided by
these Regulations, the amount to be deducted or withheld by an employer in a
taxation year from any payment of remuneration to an employee shall be the
relevant percentage of the amount determined in accordance with the rules in
subsection 102(1) of the federal regulations except that for the purpose of
this subsection the “notional tax for the year” shall be computed without
reference to subparagraphs 102(1)(f)(ii) to (iv) of the federal regulations.
(2) Notwithstanding
subsection (1), where an employee has elected pursuant to subsection 107(2) of
the federal regulations and has not revoked that election, the amount to be
deducted or withheld by the employer in a taxation year from a payment of
remuneration that is
(a) in
respect of commissions or is a combined payment of commissions and salary or
wages, or
(b) in
respect of salary or wages where the employee is remunerated by a combination
of commissions and salary or wages
made in the taxation
year to the employee shall be the relevant percentage of the amount determined
in accordance with the rules in subsection 102(2) of the federal regulations
except that for the purpose of this subsection the notional tax for the year
shall be computed without reference to subparagraphs 102(2)(f)(ii) to (iv) of
the federal regulations.
(3) The
amount to be deducted or withheld by an employer in a taxation year from any
payment of remuneration
(a) where
an employee’s annual remuneration for the taxation year from his work at the
establishment of the employer in Alberta is in the range specified in paragraph
102(3)(a) of the federal regulations, and
(b) for
a pay period that is a week, a 2‑week period, a semi‑monthly
period, a month or a 4‑week period in which the payment is made by the
employer
to the employee shall
be the relevant percentage of the amount determined in accordance with the
rules in subsection 102(3) of the federal regulations except that for the
purpose of this subsection the amount that is the notional tax for the year
shall be computed without reference to subparagraphs 102(3)(f)(ii) to (iv) of
the federal regulations.
(4) This section applies to 1986 and prior taxation
years.
AR 317/72
s3;196/73;238/78;401/79;52/81;387/85;498/87
3.1(1) Except as otherwise provided by
these Regulations, the amount to be deducted or withheld by an employer in a
taxation year from any payment of remuneration to an employee shall be the
aggregate of
(a) the
relevant percentage of the amount determined in accordance with the rules in
subsection 102(1) of the federal regulations except that for the purpose of
this clause the notional tax for the year shall be computed without reference
to subparagraphs 102(1)(f)(ii) to (iv) of the federal regulations,
(b) the
amount, if any, determined in accordance with the rules in subsection 102(1) of
the federal regulations except that for the purpose of this clause the notional
tax for the year shall be computed
(i) without reference to paragraph 102(1)(f) of the federal
regulation, and
(ii) as 8% of the amount, if any, by which the relevant percentage of
the notional tax for the year computed for the purpose of clause (a) exceeds
$3500,
and
(c) the
amount determined in accordance with the rules in subsection 102(1) of the
federal regulations except that for the purpose of this clause the notional tax
for the year shall be computed
(i) without reference to paragraph 102(1)(f) of the federal
regulations, and
(ii) as 0.5% of the notional net remuneration for the year.
(2) Notwithstanding
subsection (1), where an employee has elected pursuant to subsection 107(2) of
the federal regulations and has not revoked that election, the amount to be
deducted or withheld by the employer in a taxation year from any payment of
remuneration that is
(a) in
respect of commissions or a combined payment of commissions and salary or
wages, or
(b) in
respect of salary or wages where the employee is remunerated by a combination
of commissions and salary or wages
made in the taxation
year to the employee shall be the aggregate of
(c) the
relevant percentage of the amount determined in accordance with the rules in
subsection 102(2) of the federal regulations except that for the purpose of
this clause the notional tax for the year shall be computed without reference
to subparagraphs 102(2)(f)(ii) to (iv) of the federal regulations,
(d) the
amount, if any, determined in accordance with the rules in subsection 102(2) of
the federal regulations except that for the purpose of this clause the notional
tax for the year shall be computed
(i) without reference to paragraph 102(2)(f) of the federal
regulations, and
(ii) as 8% of the amount, if any, by which the relevant percentage of
the notional tax for the year computed for the purpose of clause (a) exceeds
$3500,
and
(e) the
amount determined in accordance with the rules in subsection 102(2) of the
federal regulations except that for the purpose of this clause the notional tax
for the year shall be computed
(i) without reference to paragraph 102(2)(f) of the federal
regulations, and
(ii) as 0.5% of the notional net remuneration for the year.
(3) The
amount to be deducted or withheld by an employer in a taxation year from any
payment of remuneration
(a) where
an employee’s annual remuneration for the taxation year at his work at the
establishment of the employer in Alberta is in the range specified in paragraph
102(3)(a) of the federal regulations, and
(b) for
a pay period that is a period of a week, a 2‑week period, a semi‑monthly
period, a period of a month or a 4‑week period in which the payment is
made by the employer
to the employee shall
be the aggregate of
(c) the
relevant percentage of the amount determined in accordance with the rules in
subsection 102(3) of the federal regulations except that for the purpose of
this clause the amount that is the notional tax for the year shall be computed
without reference to subparagraphs 102(3)(f)(ii) to (iv) of the federal
regulations,
(d) the
amount, if any, determined in accordance with the rules in subsection 102(3) of
the federal regulations except that for the purpose of this clause
(i) the notional tax for the year shall be computed
(A) without reference to paragraph 102(3)(f) of
the federal regulations, and
(B) as 8% of the amount, if any, by which the
relevant percentage of the notional tax for the year computed for the purpose
of clause (a) exceeds $3500,
and
(ii) the reference in subparagraph 102(3)(g)(i) of the federal
regulations to “amount computed under paragraph (f)” shall be deemed to be to
“notional tax for the year”,
and
(e) the
amount determined in accordance with the rules in subsection 102(3) of the
federal regulations except that for the purpose of this clause
(i) the notional tax for the year shall be computed
(A) without reference to paragraph 102(3)(f) of
the federal regulations, and
(B) as 0.5% of the notional net remuneration for
the year,
and
(ii) the reference in subparagraph 102(3)(g)(i) of the federal
regulations to “amount computed under paragraph (f)” shall be deemed to be to
“notional tax for the year”.
(4) This section applies to 1989 and subsequent
taxation years.
AR 498/87 s4;27/89
3.2(1) The amount to be deducted or
withheld by an employer from any payment of remuneration to an employee in the
period beginning on January 1, 1987 and ending on June 30, 1987 shall be
determined under section 3 using the relevant percentage applicable to the 1986
taxation year.
(2) The
amount to be deducted or withheld by an employer from any payment of remuneration to an employee in the
period beginning on July 1, 1987 and ending on December 31, 1987 shall be
determined under section 3.1 except that for the purpose of this subsection
(a) the
relevant percentage is 49.5%,
(b) the
references in section 3.1(1)(b)(ii), (2)(d)(ii) and (3)(d)(i)(B) to “8%” shall
be deemed to be to “16%”, and
(c) the
references in section 3.1(1)(c)(ii), (2)(e)(ii) and (3)(e)(i)(B) to “1%” shall
be deemed to be to “2%”.
(3) The
amount to be deducted or withheld by an employer from any payment of remuneration to an employee in the
period beginning on January 1, 1988 and ending on June 30, 1988 shall be
determined under section 3.1 except that for the purposes of this subsection
the references in section 3.1(1)(c)(ii), (2)(e)(ii) and (3)(e)(i)(B) to “0.5%” shall be deemed to be “1%”.
(4) The amount to be deducted or withheld by an
employer from any payment of
remuneration to an employee in the period beginning on July 1, 1988 and ending
on December 31, 1988 shall be determined under section 3.1 except that for the
purposes of this subsection the amount to be deducted shall not include the
amount referred to in section 3.1(1)(c)(ii), (2)(e)(ii) or (3)(e)(i)(B), as the
case may be.
AR 498/87 s4;27/89
Lump Sum Payments
4(1) Where a payment in respect of a bonus or retroactive
increase in remuneration is made by an employer to an employee whose total
remuneration from the employer (including the bonus or retroactive increase)
may reasonably be expected not to exceed $5,000 in the calendar year in which
the payment is made, the employer shall deduct or withhold the relevant
fraction of 15% of that payment in lieu of the amount determined under section
3, 3.1 or 3.2, as the case may be.
(2) Where
a payment in respect of a bonus is made by an employer to an employee whose
total remuneration from the employer (including the bonus) may reasonably be
expected to exceed $5,000 in the taxation year of the employee in which the
payment is made, the amount to be deducted or withheld therefrom by the
employer is
(a) the
amount determined under section 3, 3.1 or 3.2, as the case may be, in respect
of an assumed remuneration equal to the aggregate of
(i) the amount of regular remuneration paid by the employer to the
employee in the pay period in which the remuneration is paid, and
(ii) an amount equal to the bonus payment divided by the number of pay
periods in the taxation year of the employee in which the payment is made
minus
(b) The
amount determined under section 3, 3.1 or 3.2, as the case may be, in respect
of the amount of regular remuneration paid by the employer to the employee in
the pay period
multiplied by
(c) the
number of pay periods in the taxation year of the employee in which the payment
is made.
(3) Where
a payment in respect of a retroactive increase in remuneration is made by an
employer to an employee whose total remuneration from the employer (including
the retroactive increase) may reasonably be expected to exceed $5,000 in the
taxation year of the employee in which the payment is made, the amount to be
deducted or withheld therefrom by the employer is
(a) the
amount determined under section 3, 3.1 or 3.2, as the case may be, in respect
of the new rate of remuneration
minus
(b) the
amount determined under section 3, 3.1 or 3.2, as the case may be, in respect
of the previous rate of remuneration
multiplied by
(c) the
number of pay periods in respect of which the increase in remuneration is
retroactive.
(4) If
a lump sum payment as defined in subsection 103(6) of the federal regulations
is made by an employer to an employee who is a resident of Alberta, the
employer shall deduct or withhold the relevant fraction of
(a) 10%
where the payment does not exceed $5,000,
(b) 20%
where the payment exceeds $5,000 but does not exceed $15,000, or
(c) 30%
where the payment exceeds $15,000,
of that payment, in
lieu of an amount determined under section 3, 3.1 or 3.2, as the case may be.
(5) Subsection 103(5) of the federal regulations is
applicable with all necessary modifications for the purpose of this section.
AR 317/72
s4;196/73;238/78;401/79;387/85;498/87
Application of Federal
Regulations
5(1) No amount shall be deducted or withheld from a payment in
accordance with section 3, 3.1, 3.2 or 4 where, because of section 104 of the
federal regulations, no deduction is required to be made under section 102 or
103 of those regulations.
(2) Subsection 102(5) and sections 106 to 109 of
the federal regulations apply to an employer and an employee and to the
determinations made under this Regulation but the reference in subsection
109(1) to subsection 153(1.2) shall be read as a reference to section 18(1.2)
of the Alberta Income Tax Act.
AR 317/72 s5;52/81;387/85;498/87
6 Alberta Regulation 490/61 as amended and Alberta
Regulation 44/63 are rescinded.
AR 317/72 s6
7 These Regulations shall be deemed to have been
in force at all times on and after January 1, 1972.
AR 317/72 s7
