Mallvibes Shopping Forums - View Single Post

jjgirl · 12:48 AM

Hey Summerheaven,

You should check your paystub. Even if you get your money electronically deposited, they are still required to provide you with a written statement of the period for which you are being paid, and the regular hours and the payrate, the overtime hours and the payrate, as well as all the deductions taken.

The other people that posted are probably right. If you are working retail, there is usually a couple of days between the last day of your pay peroid and the date of the cheque (under the Labour Code, I believe they have 1 week). Most retail stores because of hours worked that may differ from week, do not pay for work done the very next day. There is usually a few days lag time.

With regards to payroll deductions, under normal circumstances, Income tax, Employment Insurance, and Canada Pension Plan deductions HAVE to be deducted from paycheques (called statutory deductions). HOWEVER, if you claimed on your TD1 form (the personal tax credit return form you filled out for income tax purposes) that your total income for the year from all employers and payers will be less than your total claim amount, then your employers or payers will not deduct tax from your earnings. Some employers will red flag this and ask if you realize what you are doing and the consequences of claiming no tax deduction. This is because, if you are incorrect, and are supposed to pay taxes, and had no taxes deducted, you could be stuck with a BIG tax bill in April.

The rate you get taxed at for income tax depends on what credits you are claiming for. Everyone gets the basic personal exemption. You get another credit if you support your spouse (ie. who earns very little money - the amount depends on the spouses income), another for any children born in 1990 or later and residing with you, etc. etc. etc. The more you claim, the less income tax is taken off.

No CPP is deducted if you are under 18. If you are over 18 (and under 70 and not receiving CPP, which I am assuming not), then the amount deducted is your gross earnings minus the basic exemption then multiplied by 4.95%. The basic exemption for the year is $3500, so payroll would divide this figure by the number of pay periods in the year. That figure is then deducted from your gross earnings, and the resulting amount is multiplied by 4.95%

Employment Insurance must be deducted no matter what your age, and the amount deducted is 1.8% of insurable earnings.

OK, now for the really fun stuff.

Income tax, CPP and Employment Insurance are all listed on your T4's that you will receive by mid March (if not - phone the employer - they are required by law to mail them by the end of February) for any earnings for the previous year (ie. any paycheques dated from January 1 - December 31 of the previous year).

CPP and Employment Insurance that have been deducted from your paycheques are non-refundable tax credits. This means they are amounts that are used to decrease the Basic Federal and Provincial Tax, and any amounts that is left over the Government gets to keep (hence the non-refundable part). The Income tax that has been deducted is a refundable amount. HOWEVER, only the amount that has been overdeducted is refunded.

The following is a good link to a webpage that breaks down what is on a paystub.
http://www.npw-snp.ca/Content/Naviga...ue/default.htm

The following link is the Canada Revenue Agency's web page on the different deductions, amounts, etc.
http://www.cra-arc.gc.ca/tax/busines...ng/menu-e.html

Clear as mud, huh, that's because we are talking about the government here.

If you're still confused, let me know, and I'll try to explain some more. PM me if needed. I''d be happy to try and help.

12-09-2007, 12:31 AM	#9 (permalink)
jjgirl Full Member Join Date: May 2006 POSTS: 296 Buy/Sell Rating: 0 Thanks: 0 Thanked 2 Times in 1 Post	Re: Getting Paid Hey Summerheaven, You should check your paystub. Even if you get your money electronically deposited, they are still required to provide you with a written statement of the period for which you are being paid, and the regular hours and the payrate, the overtime hours and the payrate, as well as all the deductions taken. The other people that posted are probably right. If you are working retail, there is usually a couple of days between the last day of your pay peroid and the date of the cheque (under the Labour Code, I believe they have 1 week). Most retail stores because of hours worked that may differ from week, do not pay for work done the very next day. There is usually a few days lag time. With regards to payroll deductions, under normal circumstances, Income tax, Employment Insurance, and Canada Pension Plan deductions HAVE to be deducted from paycheques (called statutory deductions). HOWEVER, if you claimed on your TD1 form (the personal tax credit return form you filled out for income tax purposes) that your total income for the year from all employers and payers will be less than your total claim amount, then your employers or payers will not deduct tax from your earnings. Some employers will red flag this and ask if you realize what you are doing and the consequences of claiming no tax deduction. This is because, if you are incorrect, and are supposed to pay taxes, and had no taxes deducted, you could be stuck with a BIG tax bill in April. The rate you get taxed at for income tax depends on what credits you are claiming for. Everyone gets the basic personal exemption. You get another credit if you support your spouse (ie. who earns very little money - the amount depends on the spouses income), another for any children born in 1990 or later and residing with you, etc. etc. etc. The more you claim, the less income tax is taken off. No CPP is deducted if you are under 18. If you are over 18 (and under 70 and not receiving CPP, which I am assuming not), then the amount deducted is your gross earnings minus the basic exemption then multiplied by 4.95%. The basic exemption for the year is $3500, so payroll would divide this figure by the number of pay periods in the year. That figure is then deducted from your gross earnings, and the resulting amount is multiplied by 4.95% Employment Insurance must be deducted no matter what your age, and the amount deducted is 1.8% of insurable earnings. OK, now for the really fun stuff. Income tax, CPP and Employment Insurance are all listed on your T4's that you will receive by mid March (if not - phone the employer - they are required by law to mail them by the end of February) for any earnings for the previous year (ie. any paycheques dated from January 1 - December 31 of the previous year). CPP and Employment Insurance that have been deducted from your paycheques are non-refundable tax credits. This means they are amounts that are used to decrease the Basic Federal and Provincial Tax, and any amounts that is left over the Government gets to keep (hence the non-refundable part). The Income tax that has been deducted is a refundable amount. HOWEVER, only the amount that has been overdeducted is refunded. The following is a good link to a webpage that breaks down what is on a paystub. http://www.npw-snp.ca/Content/Naviga...ue/default.htm The following link is the Canada Revenue Agency's web page on the different deductions, amounts, etc. http://www.cra-arc.gc.ca/tax/busines...ng/menu-e.html Clear as mud, huh, that's because we are talking about the government here. If you're still confused, let me know, and I'll try to explain some more. PM me if needed. I''d be happy to try and help. __________________ GROWING OLD IS MANDATORY. GROWING UP IS OPTIONAL - LAUGHTER IS THERAPEUTIC! Last edited by jjgirl; 12-09-2007 at 12:48 AM.