Tax Table updates for July 2021 are here
Sage has a CRA Payroll Update which you need to apply before running your first payroll in July 2021, for Sage 300 and Sage BusinessVision (BV).
CRA Payroll Updates typically come out 2 times per year (in January and then July) – but updates are not limited to that. Britec is here to ensure your updates are installed and applied correctly – preventing you from having to make any adjustments after the fact. We are here to ensure that if any issues arise, we can correctly diagnose and fix them.
We recommend having the update installed before running any payroll (notably coming up in July 2021).
Need some help or want to chat? Contact us. Or keep reading below.
Why is this important?
The taxation updates reflect the most recent payroll changes from the CRA including all the provinces.
(The bottom of this article outlines all the specific July 2021 updates.)
How do I get a Sage Tax Table update scheduled?
Please email your request to email@example.com or to your favourite analyst at Britec
Answers to common questions about Sage Payroll updates
Q: Only I have access to the payroll module in my Sage 300 or Sage BusinessVision software, can I just install the payroll update on my computer?
A: The payroll update needs to be installed on all computers where Sage products are installed. Take the guess work out of the update and contact Britec today to book an appointment for payroll update. Under certain circumstances, product updates must be applied before applying the tax update.
Q: When should I install the 2021 Sage 300 or Sage BusinessVision Payroll Update?
A: After the last payroll in June and before your first payroll run in July 2021, even though you may be paying employees for time worked in June 2021.
Q: Should I backup before applying the update?
A: We recommend a full backup of the program directory and data before applying the update. Our process ensures we take this backup.
Q: Is there any documentation of what the 2021 update has?
A: Yes. As part of the process of the update, we provide documentation of the tax law changes.
Q. What should I do if I didn’t get the update installed before the first pay period in July 2021?
A. Install the update before the second pay period or as soon as possible. Take no other action – any discrepancies will be straightened out when your employees file their 2021 tax return.
Q. I sometimes notice differences between the taxes calculated by Sage BusinessVision and the taxes I calculate using the manual tax tables. Why is this, and which figure is correct?
A. The Sage BusinessVision calculations are correct because they use exact formulas outlined in the tax laws, and published in by the CRA. Manual tables estimate tax deductions for a salary range, while the Sage BusinessVision formulas work with fractions of a cent. Also, manual tables ignore certain provincial allowances and deductions.
Q. Are there any limitations regarding the version of Sage 300?
A. Sage 300 2016 and Sage 300 Canadian Payroll 7.2 are no longer supported. If you use Sage 300 2016 or earlier, we encourage you to contact your Sage business partner to upgrade to a supported version of the software. Effective February 28, 2020, Sage 300 Canadian Payroll 7.3 will no longer be supported for 300 2017.
Q. What versions of Sage 300 can be updated with this new July 2021 payroll update?
A. Sage 300 Version 2018 is no longer supported for payroll updates. Versions released after Sage 300 2018 are eligible for the update.
Q. Is there a warning prompt in Sage 300 about the update?
A. There are no warning prompts in Sage 300 regarding the tax tables.
Q. Is there a warning prompt in Sage Business Vision about the update?
A. Yes, On July 1,2021 BusinessVision will prompt with the message below when you access payroll:
What is the summary of July 2021 tax changes?
CRA has announced upcoming tax changes:
- There were no federal changes announced.
- Provincial and territorial tax changes:
- New Brunswick New Tax Rate The Government of New Brunswick announced on May 11, 2021, that there would be a reduction of the tax rate applied to the first tax bracket from 9.68% to 9.4% effective January 1, 2021. (Subject to the approval by the New-Brunswick government.)
- Since employees have been taxed at a different rate for the first six months of the year, a prorated tax rate will apply for the remaining six months. The prorated tax rate effective July 1, 2021 will be 9.12%
- There is no change for Alberta, British Columbia, Manitoba, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan, Yukon or Outside Canada.
Please reach out and Contact Britec to help with all your Sage updates and installations. We’re here to help!