Personal Finance

How are taxes calculated with a second job with same employer at different salary

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  • Apr 13th, 2019 9:49 am
[OP]
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Feb 4, 2010
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How are taxes calculated with a second job with same employer at different salary

Just wondering how someone would be taxed (in Ontario) if they worked a second job (with occasional hours - no overtime would be accrued) with the same employer with a significantly lower salary (doesn't change tax bracket)? I'm assuming the employer would automatically calculate the correct taxes rather than it being adjusted at the end of year? I'm trying to figure out how much taxes I would be paying to see if it's even worthwhile taking the second job.
Last edited by hierophant on Apr 13th, 2019 12:25 am, edited 1 time in total.
10 replies
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Feb 9, 2018
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If they have a proper payroll department, they should know what they are doing and will be deducting the tax properly. But I would be saving some money to deal with unexpected surprise come tax time if I were you.
[OP]
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I'm asking to try to figure out how much taxes I would be paying to see if it's even worthwhile taking the second job.
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Jan 9, 2011
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It really depends. I was in the same position as you, working two different part time jobs from the same employer. The employer was deducting tax from each as if it were my only employment. As such they were deducting way less tax than they should have been. Having noticed this early on I was quite happy to just leave it be—I put the extra money into a HISA until it was time to pay up.
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Easy,

Calcul the amount you will have to pay for income taxe on the salary without the second job.

Then, calcul the amount of income taxe with both salary.

Just google ontario income taxe calculator. Try 2 or more to make sure its accurate.

You will find out if its worth it.

Btw... 2 jobs @ 100k year is exactly the same than 1 job @ 100k. The only difference, is how many hours you spend for that 100k. The income taxes calculation doesn't take in consideration if u work 90h a week or 20h for that same 100k
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hierophant wrote:
Apr 12th, 2019 11:45 pm
Just wondering how someone would be taxed (in Ontario) if they worked a second job (with occasional hours - no overtime would be accrued) with the same employer with a significantly lower salary (doesn't change tax bracket)?
You get taxed the same as everyone else. If you make more money, you pay more tax at your marginal tax rate.
hierophant wrote:
Apr 12th, 2019 11:45 pm
I'm assuming the employer would automatically calculate the correct taxes rather than it being adjusted at the end of year?
The employer never calculates your taxes for you.

The only way an employer could calculate your taxes for you is if the employer knew every financial detail about you - your income, investments, charitable deductions, medical expenses, all sorts of things (since there are so many types of income & deductions).

I certainly wouldn't share all of that info with my employer - and I like my employer.

You are probably thinking of tax withholding, where the employer withholds a certain amount from each paycheque and sends it to the govt.

Tax withholding is not the same thing as tax.

The employer is supposed to withhold at rates set by the govt. Tax withholding rates are set such that most employees will get a tax refund at the end of the year (admittedly, some employers don't follow the tax withholding rates correctly).

However, depending on your personal tax circumstances, you might end up owing tax at the end of the year.
hierophant wrote:
Apr 12th, 2019 11:45 pm
I'm trying to figure out how much taxes I would be paying to see if it's even worthwhile taking the second job.
If you already know your tax bracket (and you claim this additional income doesn't change your tax bracket), it is easy to estimate your actual taxes. For example, if you are in the 33% tax bracket, for every $100 of additional income from the 2nd job you would pay $33 in tax. That is the same as if you received a $100 raise in your regular job.

Don't forget other payroll deductions that can apply (CPP, EI, pension, etc.).

Most importantly, work harder! Millions of people on welfare are depending on you!
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M8Rxmjsik wrote:
Apr 13th, 2019 8:00 am
Most importantly, work harder! Millions of people on welfare are depending on you!
I agree. Me and a bunch of coworkers and buddies all like getting EI checks after we clear 100k in under half a year. We all just relax and vacation other half while collecting those checks.

We thank you for your support!
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[OP]
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Feb 4, 2010
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M8Rxmjsik wrote:
Apr 13th, 2019 8:00 am
You get taxed the same as everyone else. If you make more money, you pay more tax at your marginal tax rate.



The employer never calculates your taxes for you.

The only way an employer could calculate your taxes for you is if the employer knew every financial detail about you - your income, investments, charitable deductions, medical expenses, all sorts of things (since there are so many types of income & deductions).

I certainly wouldn't share all of that info with my employer - and I like my employer.
I thought it was kind of obvious I was talking about tax deductions, not personal tax but thanks for dumbing it down for me lol

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[OP]
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HyperTech wrote:
Apr 13th, 2019 1:32 am
Easy,

Calcul the amount you will have to pay for income taxe on the salary without the second job.

Then, calcul the amount of income taxe with both salary.

Just google ontario income taxe calculator. Try 2 or more to make sure its accurate.

You will find out if its worth it.

Btw... 2 jobs @ 100k year is exactly the same than 1 job @ 100k. The only difference, is how many hours you spend for that 100k. The income taxes calculation doesn't take in consideration if u work 90h a week or 20h for that same 100k
Thanks, your reply was helpful and answered my question.
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Jan 30, 2012
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hierophant wrote:
Apr 13th, 2019 8:33 am
I thought it was kind of obvious I was talking about tax deductions, not personal tax
Well, that isn't what you asked ;)

Will your employer correctly withhold deductions from your paycheque for your 2nd job (or your 1st job)?

I don't know, I don't work for your employer.

Some employers do it correctly, some don't (you might be interested in the fiasco of the federal govt's phoenix payroll system https://en.wikipedia.org/wiki/Phoenix_Pay_System ).

If you aren't sufficiently familiar with the rules for payroll deductions to determine if your employer is doing it correctly you could ask a bookkeeper or accountant to check for you.

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