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fetched 01-03-2009 12:56 AM

Tax Question.
 
Here's the problem.
My buddy got his first pay cheque recently and he has asked me to post this up.
$187.20 is his hourly worked amount.
- 23.72 Federal Tax
- 1.81 Prov Tax
- 5.93 CPP/QPP
- 3.24 EI

So basically he ends up with a deduction of 34.70 off $187.20.
is it right?
anyway he can be exempt of the Fed/Prov Tax since he probably won't even make it to the first level for income tax.

his 2nd pay cheque is even wierder.

$425.88 for hours worked.
Fed Tax 57.05 - thats 1% higher than the previous paycheque
Prov Tax 16.43 - over 10% higher
CPP/QPP - 17.75
Ei - 7.37

anyone have any insights?

misteranswer 01-03-2009 11:18 AM

Your buddy should have told his employer not to deduct taxes at all.

jackmeister 01-03-2009 11:48 AM

ask the employer to provide a computer printout of the break down of pay.

this print out is done on the government website i believe.

nipples 01-04-2009 04:34 PM

the deductions are right. the first puts him at roughly a 17% tax bracket, and after working more hours and getting paid more, he jumped into another percentage.

dont worry. at the rate he's going, making ~700 a month, he'll get it all back at the end of the year.

Slushbox 01-04-2009 05:00 PM

You can check against the online payroll deductions calculator on the CRA site:
http://www.cra-arc.gc.ca/esrvc-srvce.../pdoc-eng.html

If your buddy is certain he won't make more than the basic personal amount during the year, he should fill in a TD1 tax credits form to request that his employer not withhold taxes.


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