It seems that in the T2 program the instalments are only calculated on the federal portion and not the provincial portion of the tax for the “Previous Year”. I had to overwrite the “Total instalment based before refundable credits” cell to get the proper instalments.
The calculations for the second previous year is correct.
For the provincial instalment to calculate, the instalment base must meet the minimum threshold of greater than $3000. This is separately required for federal and provincial instalments. In other words, if the provincial instalments base is greater than $3,000, the provincial portion of the instalments should kick in. However, if the instalment base is $3,000 or less, the provincial instalments will not kick in unless you check this box on page 2 of the instalments worksheet.
@Steven Thank you, this was helpful!