Personal Finance

how do taxes work? (part time job in Ontario)

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  • Jul 18th, 2006 1:25 am
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Deal Expert
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Jan 27, 2004
34247 posts
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Toronto

how do taxes work? (part time job in Ontario)

Ive held down part time jobs for about a year now. Doing about 30 hrs a week. So im kinda above a part time worker but below a full time one in terms of hours.

yesterday i got my first pay cheque. It was $600 but i ended up only getting $495 after taxes...

on my pay stub.. the taxes break down like this
CIT $70.59
CPP $23.05
EI $11.22

whatsup with that? Taxes ate up over $100 :-0
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22 replies
Deal Guru
Aug 26, 2001
14675 posts
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North York
*morpheus* Welcome... to the Real World.
Deal Guru
Aug 26, 2001
14675 posts
264 upvotes
North York
To calculate what your take-how pay will be, use the Govt of Canada's nifty "TOD" program: http://www.cra-arc.gc.ca/tax/business/tod/menu-e.html

I just tried using $600 and it appears to be a bit out of whack, although the CPP and EI numbers are right.

Ernst and Young has personal tax calculators that will give you an idea of the yearly tax burden you will have... i.e. add up the income from all your part-time jobs over the course of the year.
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Aug 24, 2004
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Theres a free program called WinTax that you can download and run to see how much taxes you'll get raped ..er.. taken off your pay every paycheque.

I use it for budgeting, its quite handy.
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Deal Addict
Dec 4, 2004
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Kingston
hehe, these threads always make me chuckle.
welcome to life :) the government owns 30 percent of what you work for until you're dead :)
Sr. Member
Nov 8, 2004
655 posts
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Surprising as it may seem the stuff government does costs bucks.

Health care, schools, military, welfare, corporate welfare, environmental protection, seniors pensions, cops, roads, courts, prisons, border patrol, disaster assistance, Parks Canada, Indian affairs, Children's aid society, CBC.

None of it is free!
Banned
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Jun 21, 2005
4231 posts
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the more you make, the more they tax.
the less you make, the less you have.

sigh*
Deal Addict
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Mar 8, 2006
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Richmond
Don't you not have to pay taxes if you make less than 8K per year?
Member
May 23, 2006
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M@rk wrote:Don't you not have to pay taxes if you make less than 8K per year?
True, but all employers annualize it out over the year... so even though you may only work 4 months of the year, they tax as though you're making that same amount over the entire 12 months of the year.

If you end up below the basic personal exemption, you'll get a refund. There is no refund of CPP unless you make under $3000 or so (which is the CPP basic exemption) or over the CPP maximum, and I don't think there's any refund of EI at all (unless you pay over the EI maximum contribution).
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Mar 8, 2006
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Richmond
Oh, OK. Thanks for clearing it up!
[OP]
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Jan 27, 2004
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i think i ventured over into another tax bracket. DAmn...
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May 23, 2006
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UrbanPoet wrote:i think i ventured over into another tax bracket. DAmn...
At $600 every two weeks (which is what I'm assuming) you won't venture into another tax bracket... you won't even make enough to hit the Ontario health care premium (which begins to kick in at 20,000). The lowest tax bracket is under ~34,500 for Ontario.
[OP]
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rborek wrote:At $600 every two weeks (which is what I'm assuming) you won't venture into another tax bracket... you won't even make enough to hit the Ontario health care premium (which begins to kick in at 20,000). The lowest tax bracket is under ~34,500 for Ontario.
Oh... really?
b/c @ my other job.... I did 25-30 hrs a week and get a bi weekly paycheque of $555 gross.
And it never took off that much in taxes which is why im confused...
Im only making 50cent more @ this new job, and the hrs are roughly the same!

Thats why im a lil shocked!
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Member
May 23, 2006
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UrbanPoet wrote:Oh... really?
b/c @ my other job.... I did 25-30 hrs a week and get a bi weekly paycheque of $555 gross.
And it never took off that much in taxes which is why im confused...
Im only making 50cent more @ this new job, and the hrs are roughly the same!

Thats why im a lil shocked!
According to the payroll tables (don't have TOD installed on this computer, so I just look at the payroll deduction tables at the CRA site), assuming a bi-weekly salary of $600:

Federal Tax: 34.20
Ontario Tax: 14.75
CPP: 23.05
EI: 11.22

It looks as though they are deducting more tax than usual... this could be because you declared something different on your TD1 (ie other employment income).
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