Manitoba Payroll Instructions

Manitoba 2023 Tax Info

Manitoba uses a 'step' table for income tax withholding calculations. Rates and formulas changed slightly in 2023 (inflation adjustment).

HINT: TurtleSoft provides free annual updates for Canadian federal and Manitoba provincial tax withholding rates.

Manitoba LCP

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

If one of your employees takes a deduction for the labour-sponsored funds 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.
  2. Click the New button.
  3. Call the Tax Item "Manitoba LCP" 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 $750 or 15% of the purchase value of approved 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 LCP credit to the employee. follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Packages.
  2. Click the New button.
  3. Put a checkmark next to each tax that applies to this employee (including the LCP).
  4. Click OK.
  5. Open the Payroll tab on the left, and choose Employees.
  6. Locate the employee account.
  7. Click the Payroll Setup button.
  8. Click in the Tax Package field and enter the tax package that you just created.
  9. Click OK.

If several 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.

HINT: Use the Duplicate button in the Tax Item List window to make a copy of the original and edit the amount. Then, create tax packages for each employee (use the Duplicate command) and select the appropriate LCP Tax Item that you created for that employee.

Links

Revenue Canada Website

Goldenseal Payroll Software Info

Canada Payroll Withholding

Free 2023 Payroll Tax Table Updates

Click here for more about Goldenseal payroll accounting software.

Province Links

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