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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
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.
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.