New Brunswick Payroll Instructions

2023 New Brunswick Tax Info

New Brunswick uses a 'step' table for income tax withholding calculations. Tax rates and withholding formulas changed in 2023, as did the Federal withholding tax formulas.

New Brunswick 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 provincial tax credit (LCP), you'll need to create a tax item for their LCP credit. To do that, 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 "New Brunswick 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 smaller of $750 or 15% of the purchase value of approved labour-sponsored venture capital corporation shares, and divide it by the number of pay periods in the year.
  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's account record.
  7. Click the Payroll Setup button.
  8. Click in the Tax Package field and enter the package that you just created.

If several employees get a different LCP credit amount, each one will require a separate tax item, and a tax package that includes their deduction.

HINT: Use the Duplicate button in the Tax Item List window to duplicate the first LCP credit, and edit the amount. Then, create tax packages for each employee (use the Duplicate command) and select the LCP Tax Item that you created for each employee.

Payroll 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.

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