Free Alberta Payroll Tax Calculator
How to Use the Alberta Payroll Tax Calculator (Step-by-Step)
Understanding your paycheck is essential, and our Alberta Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:
Step 1: Enter Your Location and Filing Status
- Country: Ensure “Canada” is selected. (This is pre-filled.)
- Province/State: Choose “Alberta” from the dropdown menu. (This is pre-filled.)
- Federal Claim Amount: Enter your federal personal amount. This amount affects the amount of federal income tax withheld from your paycheck. (Use your TD1 form as a guide.)
- Provincial Claim Amount: Enter your Alberta provincial personal amount. This amount affects the amount of Alberta provincial income tax withheld from your paycheck. (Use your TD1AB form as a guide.)
Step 2: Input Your Pay Information
- Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
- Gross Wage/Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
- Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.
Step 3: Calculate Your Taxes
Click the “Calculate →” button.
The calculator will instantly display your estimated:
- Pay Period Section:
- Taxable Income: The portion of your income subject to taxes for the pay period.
- Federal Tax: The estimated federal income tax withheld for the pay period.
- Provincial Tax: The estimated Alberta provincial income tax withheld for the pay period.
- Total Tax: The sum of federal tax and provincial tax for the pay period.
- Annual Section:
- Taxable Income: Your estimated annual taxable income.
- Federal Tax: Your estimated annual federal income tax.
- Provincial Tax: Your estimated annual Alberta provincial income tax.
- Total Tax: Your estimated total annual taxes.
- Pay Period Section:
Step 4: Review and Adjust (If Needed)
- Carefully review the calculated results.
- If you need to make changes, adjust the input fields and click “Calculate” again.
- To start a new calculation with different parameters, click the “New Calculation” button.
Important Notes:
- This calculator provides estimates based on the information you provide.
- Actual tax and deduction amounts may vary based on individual circumstances and additional deductions.
- For precise tax calculations, consult a tax professional or refer to official Canada Revenue Agency (CRA) and Alberta government resources.
- Keep your TD1 and TD1AB forms updated to ensure accurate tax withholding.
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Alberta Payroll Tax Calculator - Employer Resources
This section provides essential information and resources for employers in Alberta regarding payroll, employment standards, and related legislation. It is designed to help you understand and comply with the Employment Standards Code and Regulation. While this resource offers valuable guidance, it is crucial to remember that it does not encompass all requirements, and employers remain responsible for adhering to all applicable laws.
Important Disclaimer: This information is intended for guidance and does not constitute legal advice. In case of any discrepancy between this resource and the official legislation, the legislation will always prevail.
Availability of Legislation
- Alberta Employment Standards Code and Regulation: These documents outline the fundamental requirements for employment standards in Alberta. You can download them from the Alberta King’s Printer website: alberta.ca/alberta-kings-printer
- Official printed copies are available for purchase online or in person at:
- 7th floor, Park Plaza 10611-98 Avenue, Edmonton, Alberta T5K 2P7
- Phone: 780-427-4952
- For toll-free assistance, dial 310-0000, followed by the area code and telephone number.
Other Relevant Legislation
Employers may also need to comply with the following legislation:
- Canada Labour Code: www.laws-lois.justice.gc.ca/eng/acts/L-2
- Labour Relations Code: www.alrb.gov.ab.ca/
- Occupational Health and Safety Act, Code and Regulation: alberta.ca/occupational-health-safety
- Alberta Human Rights Legislation: albertahumanrights.ab.ca
- Workers’ Compensation Board: www.wcb.ab.ca/home
Employment Standards Website
- For comprehensive information on Alberta’s employment standards, visit alberta.ca/employment-standards. This website provides details on employer and employee rights and obligations, specific industry information, and access to resources like self-assessment tools and webinars.
Employment Records
- Employers are required to maintain accurate and current employment records for each employee for at least three years from the record’s creation.
- Employment Records Checklist:
- Employee’s name, address, and date of birth
- Wage and overtime rates
- Regular and overtime hours worked
- Earnings paid (itemized components)
- Deductions from earnings (with reasons)
- Time off in lieu of overtime
- Employment start date
- General holiday dates
- Annual vacation details (dates and earned period)
- Wage/overtime rate changes
- Documentation notices for job-protected leave.
- Termination notices and return to work requests after temporary layoffs.
- Overtime agreements.
- Averaging agreements.
- Parental consent for youth employment.
- Agreements for banked overtime during termination.
- Permits and variances.
- Reference: ES Code, Section 15 & 14.
Pay Statements
- Employers must provide employees with a written pay statement (pay stub) at the end of each pay period.
- Pay Statements Checklist:
- Pay period covered
- Regular and overtime hours worked
- Hours taken off in lieu of overtime.
- Wage and overtime rates
- Earnings paid (itemized components)
- Deductions from earnings (with reasons)
- Reference: ES Code, Section 14
- Electronic pay statements are acceptable if employees have confidential access, can view, and print them.
- If requested by an employee, the employer must provide a detailed calculation of the employee’s earnings.
- See additional resources: Sample pay statement.
Recording Hours of Work
- Employers are required to record the actual hours worked by each employee (excluding managers and supervisors).
- Hours of work include:
- Work performed at the employer’s request
- Time off in lieu of overtime
- Paid breaks (when employees cannot leave the premises)
- Employment records must clearly show the calculation of regular and overtime hours.
- Reference: ES Code, Section 1(1)(n).
- See additional resources: Sample employee time tracking sheet.
Pay Periods
- Employers must establish pay periods (daily, weekly, bi-weekly, semi-monthly, or monthly, not exceeding one month).
- Employees must be paid within 10 consecutive days after the end of the pay period.
- Reference: ES Code, Sections 7 and 8.
Payment of Earnings Upon Termination
- Employees must be paid their earnings:
- Within 10 consecutive days after the end of the pay period in which termination occurred, or
- Within 31 consecutive days after the last day of employment.
- Reference: ES Code, Section 8.
Wages and Earnings
- Wages: Payment for work done (excluding overtime, vacation, holiday, termination pay, gifts, non-performance bonuses, expense allowances, and tips).
- Earnings: Wages, overtime pay, vacation pay, general holiday pay, and termination pay.
- Earnings must be paid in cash, cheque, money order, or direct deposit.
- Reference: ES Code, Section 1(1)(j) and 1(1)(x).
Deductions from Earnings
- Mandatory deductions:
- Federal and provincial income tax
- Employment Insurance premiums
- Canada Pension Plan contributions
- Court-ordered judgments.
- Optional deductions (requiring written authorization):
- Childcare costs
- Personal savings plans
- Medical/dental premiums
- Employee group contributions
- Deductions without employee authorization, but with written notification.
- Recovery of overpayment due to payroll error, within 6 months of the error.
- Recovery of vacation pay paid before it was earned.
- See Additional resources: Payroll deduction authorization forms.
- Deductions not allowed (even with authorization):
- Faulty work
- Cash shortages (if others had access)
- Cash shortages from failed collections
- Uniform costs
- Reference: ES Code, Section 12.
Sample Alberta Pay Statement & Requirements
The Alberta Employment Standards Code mandates that employers provide employees with a detailed written statement of earnings at the end of each pay period, commonly known as a pay stub. This statement ensures transparency and helps employees understand their earnings and deductions.
Essential Information (Statement of Earnings Checklist):
Your company’s pay stub must include the following:
- ✔ Pay period covered by the statement: The specific dates the pay period encompasses.
- ✔ Number of regular and overtime hours worked: A clear breakdown of regular and overtime hours.
- ✔ Number of hours taken off in lieu of overtime: Any hours taken as time off instead of overtime pay.
- ✔ Wage rate and overtime rate: The hourly rates for regular and overtime work.
- ✔ Earnings paid, showing each component separately: Itemized earnings, including wages, overtime pay, general holiday pay, and vacation pay.
- ✔ Amount of deductions from earnings and the reason for each deduction: A detailed list of deductions and their respective reasons (e.g., income tax, EI, CPP).
Pay Statement Delivery
- Pay statements can be provided as printed copies or electronically.
- Electronic statements are acceptable if employees have confidential access, can view, and print them.
- Privacy legislation may require an employer to maintain the confidentiality of the employee’s payroll information.
Terms of Use & Disclaimer
- This sample pay statement is for informational purposes only and should not be considered legal advice.
- Employers are responsible for ensuring compliance with all applicable legal requirements, including privacy legislation.
- The Government of Alberta provides this sample “as-is” and excludes liability for any losses or damages arising from its use.
- This sample can be reproduced for personal and public non-commercial use, including for fulfilling employment record requirements.
- In case of a complaint Employment standards will make a determination based on gathered information, and the applicable legislation.
- The Employment Standards Code provides minimum standards only.
- In the case that any provision is unenforceable, all other provisions remain in effect.
Sample Pay Statement
Pay Period: April 21-25, Year
Wage Rate: $15.00/hour
Overtime Rate: $22.50/hour
Overtime Hours Worked: 2
Overtime Hours Banked: 2
| Hours | Earnings |
|---|---|
| Regular Hours (36) | $540.00 |
| Overtime (2) | $45.00 |
| Time off in lieu of overtime (2 banked hours x $15.00/hour) | $30.00 |
| General Holiday Pay (8 hours x $15.00 x 1.5) | $180.00 |
| Vacation Pay (4% x $570.00 wages) | $22.80 |
| Total Earnings | $772.80 |
Deductions
| Description | Amount |
|---|---|
| Income Tax | ($50.00) |
| EI | ($20.00) |
| CPP | ($9.00) |
| Total Deductions | ($79.00) |
| Net Pay | $693.80 |
Payroll Deduction Authorization Form (Multiple Instalment Deductions)
Legal Name of Company and Address:
__________________________________________
Company Phone Number:
__________________________________________
In accordance with Part 2, Division 1, Section 12 of the Employment Standards Code, and by signature below:
I, authorize my employer, to deduct the total amount of $ off my earnings for receipt of the following:
This payroll deduction will be effective to .
The amount of $ will be deducted from my pay periods and is no longer payable after pay period ending .
Employee Signature:
__________________________________________
Date:
__________________________________________
Payroll Deduction Authorization Form (Unique/One-Time Deductions)
Legal Name of Company and Address:
__________________________________________
Company Phone Number:
__________________________________________
In accordance with Part 2, Division 1, Section 12 of the Employment Standards Code, and by signature below:
I, authorize my employer, to deduct the total amount of $ off my earnings for receipt of the following:
This payroll deduction will be deducted off my pay period ending .
Employee Signature:
__________________________________________
Date:
__________________________________________
Alberta Payroll Deduction Authorization Forms
The Alberta Employment Standards Code, specifically Part 2, Division 1, Section 12, outlines the regulations regarding deductions from employee earnings. Generally, employers cannot deduct sums of money from an employee’s pay unless specifically allowed by the Code. This section provides information and sample authorization forms to ensure compliance.
Key Requirements:
- Written Authorization: Employee authorization for deductions must be provided in writing.
- Specificity: The authorization must clearly state the amount to be deducted and the purpose of the deduction.
- Record Keeping: Employers must maintain copies of these authorization forms in the employee’s file.
- Prohibited Deductions: Certain deductions are prohibited, even with written authorization, including those for faulty work, cash shortages, uniforms, or loss of property under certain conditions.
- Changes/Cessation: Any changes or cessation of ongoing deductions requires a new authorization form.
- Overpayment Recovery: Employers may recover overpayments due to payroll calculation errors within the previous six months, or recover unearned vacation pay, without written authorization, but must provide written notice to the employee. Overpayments before November 1, 2020 require written authorization.
Excerpt from the Employment Standards Code, Part 2, Division 1, Section 12:
- An employer must not deduct from an employee’s earnings unless permitted by the Code.
- Permitted deductions include:
- Those required by law (e.g., taxes, court orders).
- Recovery of overpayments due to payroll errors (within 6 months).
- Recovery of vacation pay paid in advance.
- Those authorized by a collective agreement.
- Those personally authorized in writing by the employee.
- Deductions for faulty work, certain cash shortages, or uniform costs are prohibited.
- Employers must provide written notice before any deduction from earnings due to overpayment or advanced vacation pay.
Sample Payroll Deduction Authorization Forms
1. Payroll Deduction Authorization Form (Multiple Installment Deductions)
- Legal Name of Company and Address:
- Company Phone Number:
- Authorization:
- Employee Name (Print):
- Employer Name:
- Total Amount to be Deducted: or Amount to be Deducted per Pay Period:
- Purpose of Deduction: (e.g., rent, meals, childcare, invoice #)
- Effective Start Date:
- Effective End Date: (e.g., indefinitely, until repayment)
- Exact Dollar Amount per Pay Period:
- Pay Period Frequency: (monthly, bi-weekly, etc.)
- Pay period ending:
- Employee Signature:
- Date:
2. Payroll Deduction Authorization Form (Unique/One-Time Deductions)
- Legal Name of Company and Address:
- Company Phone Number:
- Authorization:
- Employee Name (Print):
- Employer Name:
- Total Amount to be Deducted:
- Purpose of Deduction: (e.g., cell phone, rent, meals, childcare, invoice #)
- Pay period frequency: (monthly, bi-weekly, etc.)
- Pay period ending:
- Employee Signature:
- Date:
Important Considerations
- Ensure all authorization forms are clear, specific, and accurately reflect the agreed-upon deductions.
- Maintain thorough records of all authorization forms.
- Stay informed about changes to the Employment Standards Code.
Terms of Use & Disclaimer
- These samples are for informational purposes only and should not be considered legal advice.
- Employers are responsible for ensuring compliance with all applicable legal requirements, including privacy legislation.
- The Government of Alberta provides these samples “as-is” and excludes liability for any losses or damages arising from their use.
- These samples can be reproduced for personal and public non-commercial use, including for fulfilling employment record requirements.
- In the case of a complaint Employment standards will make a determination based on gathered information, and the applicable legislation.
- The Employment Standards Code provides minimum standards only.
- In the case that any provision is unenforcable, all other provisions remain in effect.
Further Information
- For more details, visit alberta.ca/employment-standards.
- Contact the Employment Standards Information Centre:
- 780-427-3731 (Edmonton and surrounding areas)
- 1-877-427-3731 (Toll-free)
- From a cell phone, call #310 on Telus and Bell or *310 on Rogers.
- Ask a question online at: alberta.ca/contact-employment-standards
- TTY/TDD for the deaf or hard of hearing: 780-427-9999 (Edmonton and surrounding areas) or 1-800-232-7215 (Toll-free)
Employee Time Tracking Sheets: Ensuring Compliance
The Alberta Employment Standards Code mandates that employers meticulously record the actual hours worked by each employee on a daily basis. These records must accurately reflect the calculation of both regular and overtime hours, encompassing both paid and unpaid breaks. Notably, time off provided when employees are free to leave the workplace, as well as time off for sick leave, bereavement, or leave of absence, are exempt from this recording requirement. Two sample employee time tracking sheets are provided as templates, which can be tailored to meet the specific needs of your business.
Sample Employee Time Tracking Sheet Templates
Employee Biweekly Time Record
Week One:
| Date | Activity | Time Start | Break | Time Finish | Hours |
|---|---|---|---|---|---|
| (Enter data here) | |||||
Week one total hours:
Week Two:
| Date | Activity | Time Start | Break | Time Finish | Hours |
|---|---|---|---|---|---|
| (Enter data here) | |||||
Week two total hours:
Authorization required for all overtime hours
Total regular hours:
Total overtime hours:
Supervisor's Signature:
Important Considerations
- These templates serve as examples and can be modified to suit your unique business requirements.
- Accurate recording of all hours, including breaks, is essential for compliance with the Employment Standards Code.
Terms of Use & Disclaimer
- These samples are provided for informational purposes only and should not be construed as legal advice.
- Employers bear the responsibility of ensuring compliance with all applicable legal requirements, encompassing privacy legislation.
- The Government of Alberta provides these samples on an “as-is” basis and disclaims liability for any losses or damages arising from their use.
- These samples are available for reproduction for personal and public non-commercial use, including fulfilling employment record requirements under the Employment Standards Code.
- In the event of a complaint, Employment Standards will make an official determination based on gathered information, and the applicable legislation.
- The Employment Standards Code provides minimum standards only.
- In the case that any provision is unenforceable, all other provisions remain in effect.
Employee Weekly Time Tracking Record
Time Tracking:
| Date | Start Time | Breaks | End Time | Regular Hrs. | Overtime Hrs. | Total Hrs. |
|---|---|---|---|---|---|---|
| (Enter data here) | ||||||
Weekly Totals:
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
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