CRA’s method for bonus/irregular payments paid separately is to calculate income tax on the combined pay (regular pay + the irregular payment) using the regular tax tables, then subtract the tax that would apply to the regular pay alone. The difference is the income tax to withhold from the irregular payment.

Here, the semi-monthly taxable pay is:

Regular pay = $1,800.00

Regular + vacation payout = $3,200.00

Using the 2026 Alberta semi-monthly (24 pay periods) tax tables with claim code 1:

At $1,800, Federal tax = $130.45 and Alberta tax = $58.55 → Total = $189.00.

At $3,200, Federal tax = $356.50 and Alberta tax = $174.00 → Total = $530.50.

Income tax on the vacation payout = $530.50 − $189.00 = $341.50.

CPP (including the enhanced portion) is a separate statutory deduction that must also be calculated on the payout, but this question asked specifically for income tax withholding.