How to calculate tax (prov+fed) on hourly paid paycheque (with OT)
 

Hi economic gurus.

I am trying to calculate tax on my paycheques for an hourly paid job with overtime, but having difficulty doing so.

My standard week is 37.5 hours, but when calculating my overtime, my employer uses 40 hours as my base week.

I get paid overtime as straight pay, not time and a half.

I get paid bi-weekly.

Let's say I get paid 25 bucks an hour, and work 95 hours for two weeks. The next week I work 120 hours for two weeks. How do I calculate the tax, CPP, EI and tax from my paycheque? Thanks!

This might help


Salary Calculator

You're over complicating things. For each cheque deductions are calculated on the total gross earnings, and the assumption for ease of payroll calculators is that the gross amount is what you make every paycheck. For example, if you have huge OT one pay period and gross, let's say, $4k, tax and deductions are calculated on the assumption you make $104,000 ($4k x 26 periods if bi-weekly).

That's why bonus cheques are usually taxed to hell.

But at the end of the year it all goes by your actual gross earnings, so if you were over taxed on some cheques it will all work out in the end.

Use this calculator:

Payroll Deductions Online Calculator (PDOC) - Disclaimer