Ontario Tax
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Full time, full year workerFT, FYFT, FYFT, FYFT, FY
FT, One week reduction in work
FT Two week reduction in work
PT, FYPT, FY
ASSUMING NO HOLIDAY AS PER FORD AND CBC/CCPA CALCS
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See my explainer here:
https://deadfortaxreasons.wordpress.com/2018/04/18/the-great-ontario-minimum-wage-tax-debate-of-2018
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Year2017201820192019201920192019201920192019
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Minimum Wage11.4 & 11.6141415151514151415
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Weekly Hours40404040404020204040
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Weeks Worked50505050494850505252Column F is worker who loses a weeks worth of work due to minimum wage
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Gross T4 Income22904280002800030000294002880014000150002912031200Column G is a worker who loses two weeks worth of work due to minimum wage and that is the break point of where $15 preferred to minimum wage tax credit
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Federal Taxes
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Basic Personal Amount116351180912045.1812045.1812045.1812045.1812045.1812045.1812045.1812045.18Assuming an adjustment factor of 2.0 though not yet announced by CRA
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Canada Employment Amount117811951218.91218.91218.91218.91218.91218.91218.91218.9Assuming an adjustment factor of 2.0 though not yet announced by CRA
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EI373465464.8498488.04478.08232.4249483.392517.92For 2019 assumed 1.66 per $100
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CPP96112131249.51351.51320.91290.3535.5586.51306.621412.7For 2019 assumed CPP rate of 5.1% and $3500 exemption
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Total141471468214978.3815113.5815073.0215032.4614031.9814099.5815054.09215194.7
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Federal Nonrefundable Tax Credits2122.052202.32246.7572267.0372260.9532254.8692104.7972114.9372258.11382279.205Assuming lowest statutory tax bracket is 15%
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Gross Federal Tax3435.6420042004500441043202100225043684680
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Federal Tax Owing1313.551997.71953.2432232.9632149.0472065.1310135.0632109.88622400.795
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GST Tax Credit433433433433433433379.8399.8433433
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WITB000000718.7568.700
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Provincial Taxes
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Basic Personal Amount101711035410561.0810561.0810561.0810561.0810561.0810561.0810561.0810561.08Assuming an adjustment factor of 2.0 though not yet announced by CRA
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EI373465464.8498488.04478.08232.4249483.392517.92For 2019 assumed 1.66 per $100
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CPP96112131249.51351.51320.91290.3535.5586.51306.621412.7For 2019 assumed CPP rate of 5.1% and $3500 exemption
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Total115051203212275.3812410.5812370.02012329.46011328.9811396.58012351.09212491.700
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Ontario Nonrefudable Tax Credit581.00607.62619.91626.73624.69622.64572.11575.53623.73630.83Assuming lowest statutory tax bracket is 5.05%
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Gross Ontario Tax1156.651414141415151484.71454.4707757.51470.561575.6
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Ontario Tax Owing575.65806.38794.09888.27860.01831.76134.89181.97846.83944.77
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Ontario Tax Reduction000000134.78164.2100
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Ontario Health Premium174.2430030030030030000300300
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Total Ontario Tax749.891106.381094.091188.271160.011131.76017.731146.831244.77
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Trillum Tax Credit734.88444.24444.24324.36360396734.88734.88377.04273.12Using Benefits Calculator, Assuming $7200 in Rent paid
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After Tax Income20840.5624895.9224952.6626578.7726090.9425603.111400014847.20725863.2827554.44
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After Tax Income Plus Benefits22008.4425773.1625829.9027336.1326883.9426432.1115833.3816550.58726673.3228260.56
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After Tax Income plus benefits waiving On tax26624.0015833.3827520.15
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Difference between $15 minwage vs Ford Tax credit712.13259.94-191.89717.207740.40
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Provincial average tax rate3.273.953.913.963.953.930.000.123.943.99
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Provincial average tax rate including benefits in income3.173.893.853.923.903.880.000.113.893.96
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Low income measure at 2011 for Ontario (from https://www.policyalternatives.ca/sites/default/files/uploads/publications/Ontario%20Office/2016/05/CCPA%20ON%20Ontario%27s%20social%20assistance%20poverty%20gap.pdf)20,81120,81120,81120,81120,81120,81120,81120,81120,81120,811
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Increase in expenditures due to inflation from minimum wage (assuming spends all their income). Based on results from Scotia bank study suggestion a 0.5% increase in expenditure costs to households1401401501471447075145.6156
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http://www.gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/2018-04-13_I&V.pdf
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NOTE: Calculations based on best efforts using available information. As 2019 tax year has not been locked down, calcultions may be off here and there but that would not change the overall comparisons
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Lindsay Tedds
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School of Public Policy, University of Calgary
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April 18, 2018
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lindsay.tedds1@ucalgary.ca
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CRA Benefits calculator: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/child-family-benefits-calculator.html
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CRA Payroll Deduction calcultor: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/payroll-deductions-online-calculator.html
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Ontario Health Premium: https://www.taxtips.ca/ontax/ontariohealthpremium.htm
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CPP Changes Backgrounder: https://www.fin.gc.ca/n16/data/16-113_3-eng.asp
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EI Rates: https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/premium/rates2018.html
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CRA inflation adjustment: https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html
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Ontario income tax rates: https://www.taxtips.ca/taxrates/on.htm
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Ontario Budget: http://budget.ontario.ca/2018/index.html
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Simple Tax 2017: https://app.simpletax.ca/2017/
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Tax and Benefit Packages: https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package.html
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At this point unemployment/hour effects of the minimum wage increase effective Jan 2018 are negligible. http://www.gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/2018-04-13_I&V.pdf However, minimum wage increases are more likely to affect future employment and wages, which is why carefull analysis with a control is needed before saying the minimum wage reduced employment or wages:
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