Payroll Deductions
Reading a pay stub can be confusing. You’ve probably already noticed that your
cheque is for less money than you thought it would be. What are all of those
deductions?
First things first, let’s get used to some of
the terms.
Gross pay: Your pay before deductions.
This could include commissions, bonuses,
and vacation or overtime pay.
Net pay or take-home pay: Your pay
after deductions which include taxes and
union dues. This is what will be deposited
into your account or on your cheque.
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Try to hang onto your pay stubs and file them away somewhere safe. It’s always a
good idea to double check your pay stub and to make sure that you were paid the
correct number of hours. You could also use them to double check that your T4
slip was calculated correctly at the end of the year.
Reading a Pay Stub
Income Tax
A big part of your payroll deductions will go toward payi