Understanding Your Paycheque
If you are employed in a job, your employer will pay you a wage or salary. If you are self-employed you are responsible for your own salary.
To learn about your rights as an employee visit Settlement.Org and Employment Standards Act.
If your employer puts your pay directly into your bank, they still have to give you a pay stub. The pay stub will show you your "gross'" and “take-home” or “net” pay and all of the deductions made.
Your take-home pay is the actual amount of money paid to you. The gross pay is the original amount before the employer takes off taxes and deductions from your paycheque.
The following is a list of possible deductions on your paycheque:
• Income Taxes: This tax is money that is sent to the federal government to cover the cost of government services.
• Canada Pension Plan: A portion of your cheque is put towards a pension for your retirement.
• Employment Insurance (EI): This will provide temporary assistance during a time that you are unemployed.
• Union Dues: If you are a part of a union, please speak to your union representative in your company to help you understand this deduction.
• Contributions to a Retirement or Pension Plan: This is a personal choice. You can have a portion of your cheque saved in a plan for your retire such as a Registered Retirement Savings Plan (RRSP).
• Any other deductions from your monthly paycheque: This can occur if you have any personal deductions to your cheque, such as a fee from a social committee, charitable donations or parking passes.