BC Payroll Instructions

Turtle Creek Software provides free annual updates for BC and federal tax tables.

British Columbia uses a 'step' table for income tax withholding calculations. The tax withholding tables and formulas changed in 2021 (the steps are indexed for inflation every year). The BC calculation uses an additional credit table, which is automatically included in the payroll import.

Click here for more about Goldenseal payroll accounting software.
Click here for Canada Federal withholding instructions.
Click here for help with importing the latest withholding tax tables into Goldenseal payroll software.

Employee Dependents

Enter the number of employee dependents into the Local Exemptions field in each employee’s account record.

British Columbia Provincial LCP

The LCP program has been restored, although most employees probably will not use it.

If your employees take a deduction for the labour-sponsored funds annual provincial tax credit (LCP), create a tax item for their LCP credit. To do so, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. Click the New button.
  3. Call the Tax Item "LCP credit" plus the employee's name.
  4. Click on the Calculation Method popup field and choose Direct Dollars.
  5. Type in the amount of the credit-- take the lesser of $2000 or 15% of the purchase value of approved shares of labour-sponsored venture capital corporation stock, and divide it by the number of pay periods.
  6. Click on the Tax Type popup field and choose Employee Credit.
  7. Click OK.

You'll also need to assign the credit to the employee. Follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Packages from the submenu.
  2. Click the New button.
  3. Put a checkmark next to each tax that applies to this employee (including the British Columbia LCP).
  4. Click OK.
  5. Choose Employees from the Accounts menu.
  6. Locate the employee record.
  7. Click the Payroll Setup button.
  8. Enter the tax package that you just created into the Tax Package field.
  9. Click OK.

If two or more employees use different amounts for LCP, each one will require a separate tax item with the correct amount, and a tax package that includes their deduction.

Contact Info

GST/HST Credit (403) 233-5130
Income Tax Refund Enquiries (403) 233-5130
Fax (403) 264-5843

1166 West Pender Street
Vancouver BC
V6E 3H8