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