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| *The Commerce Journal>>>Canada Taxes |
If you make below the taxable income line, does your employer still take the tax off, then you get it back...? |
In Canada. If you make below the taxable income line, does your employer still take the tax off, then you get it back when you file your income tax return? If your annualized wages are below the exemption then no tax should be deducted from your paycheque. Currently the exemption is approximately $9,000, which translates into roughly $350 every two weeks. So any earnings in excess of $350 on a bi-weekly basis will result in income tax being withheld from your pay. CPP and EI will still be withheld from your pay, even if you earn below the basic exemption. See the link below for a payroll calculator provided by Canada Revenue Agency. Source(s): http://www.cra-arc.gc.ca/eservices/tax/b... Prior to commencing employment, the employer should give you two tax forms to fill out (one for federal, one for your particular province). On those forms, you put down what tax credits you are eligible for (e.g. the basic personal credit, any tuition/education credit), and you estimate what other income you will have in the year. See forms here: http://www.cra-arc.gc.ca/formspubs/forms... Once your employer has that information, it will calculate how much income tax to take off from your paycheque. If you earn less than say $9K in total, then chances are you won't have any income taxes deducted off your paycheque. However, CPP and EI will still be deducted, and you don't get these back when you file your income tax return. (CPP and EI are eligible for a tax credit, but since you will pay no income tax anyways, you won't get any credits for them) yes, you will get it all back when you file your taxes. experience, i once asked an employer the same question a long time ago In Canada, most employers use a standard tax deduction table based on the information TD1 you fill in when you are hired...some may use tax online, some may use payroll companies, some may use TOD but the deductions remain the same. Each employer uses their own, they don't know about other employers, so it is possible even though you are working multiple jobs to not have enough tax taken out... On the flip side, you can safely assume everyone is taking the right deductions and at tax time, when you file your income tax, if you are owed tax, CPP or EI it will be refunded. I've included a website for you http://www.cra-arc.gc.ca/menu-e.html... |
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