taxes off your pay stub: what are they and how do they work?
TRANSCRIPT
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Taxes off your pay stub: What are they and how do they work?
![Page 2: Taxes off your pay stub: What are they and how do they work?](https://reader036.vdocuments.mx/reader036/viewer/2022083005/56649f0d5503460f94c21784/html5/thumbnails/2.jpg)
• By law, an employer must deduct the following amounts from your employment earnings:
• Income tax• Employee contributions to Employment
Insurance (EI)• Employee contributions to the Canada Pension
Plan (CPP)
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• Income level:• $1 to $43,953 15 per cent • $43,954 to $87,907 22 per cent • $87,908 to $136,270 26 per cent • $136,271 and up 29 per cent
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The basic personal amount
• Because of a tax credit called the basic personal amount, you do not pay federal income tax on the first $11,138 of taxable income you earn in 2014.
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Canada Pension Plan (CPP) and Employment Insurance (EI)
• These programs are run by the federal government and participation is mandatory. You may benefit in the future by receiving payments from these programs.
• For example:1. EI protects workers who become
unemployed by paying out benefits to those who apply and qualify.
2. If you retire after age 60, the CPP pays benefits to seniors who qualify.
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How Can You get EI?
• It’s meant to be an income support if you are looking for work or you can’t work.
• You are eligible if you’ve worked 420-700 hrs in the last year… been paying into ei-must be doing this!
• You can’t get EI if you quit for no good reason or been fired for good reason!
• Can be used for… maternity, paternity, sick or compassion leave.- need to be able to prove this
• Self-employed workers can now pay in to EI