 Net income : Money you get after all deductions. (take home pay)  Taxable income : income that can be taken by the government (federal or provincial)

Slides:

Advertisements

Similar presentations

Worksheet 17 Deductions – EI and CPP. Deductions Gross Pay is what you’ve been calculating so far (pay before deductions) Deductions are things that are.

Advertisements

The Guarantees of Life Taxes. What are taxes?  Tax is a compulsory contribution levied on persons, property, or businesses for the support of government.

Where did all that money go?.  Objectives: ◦ Understand payroll taxes and withholdings. ◦ Be able to analyze a paycheck stub and W-4.

1 PAYROLLPAYROLL. 2 Firstly who is the employee? Who is the employer?

An Introduction.  15% on the first $43,953 of taxable income  22% on the next $43,954 of taxable income (on the portion of taxable income between $43,954.

Tax Vocabulary. Gross Pay The amount of money you earn each pay period.

Payroll and Short-Term Liabilities

Deductions. Gross Income Amount of money you earn before any deductions.

Introduction to Taxation

Financial Accounting Dave Ludwick, P.Eng, MBA, PMP Module 10 Payroll Liabilities.

Chapter 11 Payroll Liabilities

Take Charge.  Ability To Pay – a concept of tax fairness that people with different amounts of wealth or different amounts of income should pay taxes.

Payroll Liabilities PowerPoint Slides to accompany Fundamental Accounting Principles, 14ce Prepared by Joe Pidutti, Durham College Appendix 1 © 2013 McGraw-Hill.

Understanding a payslip

MATH 10 – UNIT 4. FM. 4 Students are expected to: Explain why gross pay and net pay are not the same. Determine the Canadian Pension Plan (CPP), Employment.

TAXES RETURN!!! BECAUSE THERE IS STILL MORE TO LEARN ABOUT THEM…

Consumer Taxation. Learning Objectives  Identify the major types of consumer taxation.  Compute gross and net pay.  Complete personal income tax forms.

Chapter 13 Preparing Payroll Records. Salary The money paid for employee services.

Where Did My Paycheck Go?

 Log into Moodle and complete today’s Bell Ringer REMINDER: Today is the last day to turn in anything from this Marking Period › Be checking your grades!

Payroll Liabilities C H A P T E R 11 © 2007 McGraw-Hill Ryerson Ltd. Electronic Presentations in Microsoft® PowerPoint®

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Computing Gross Pay Calculating Gross Earnings Section 12.1 gross.

PowerPoint® Slides to accompany Basic Bookkeeping, Seventh Edition Prepared by JD Chazan CPA, CA National Taiwan University 10-1 Copyright © 2015 by Nelson.

Section 2Payroll Deductions What You’ll Learn  Why deductions are calculated and reported.  How to calculate deductions required by the federal government.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

Income Monday, Jan 13 th. Priorities Priority 1 Essential to life Priority 2 Not essential to life, but important Priority 3 Neither essential, nor important.

DETERMINING AND PAYING THE PAYROLL

The reward for work. How people are paid Salary (stated as yearly earnings but are usually paid monthly) – more likely to be skilled, non-manual occupations.

Earning Potential Amount of money you can receive based on: Amount of money you can receive based on: Level of education Level of education Career path.

Bellwork Vanessa gets paid bi-weekly. She is always paid on the 1 st and the 15 th and earns $ She needs to pay the following monthly expenses.

Taxes off your pay stub: What are they and how do they work?

Copyright  2006 Pearson Education Canada Inc. 8-1.

Understanding Paychecks Where Does Your Money Go?.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

First Canadian Edition Price • Haddock • Brock • Hahn • Reed

The sad part of every job..  Kevin is a new employee at MmmPizza. Each week he works 37.5 hours at $7 per hour.  What is his pay?  Stop complaining.

Taxes. 5.1 – Taxes and Your Paycheck Payroll taxes Based on earnings Paid to government by you and employer Income taxes You pay on income you receive.

Lesson 13: Net Pay Consumer Math: p When employees receive their paychecks, they should know that the check does not include their full earnings,

 Gross Pay - income earned before any deductions  Salary - monthly or annual  Hourly - regular and overtime  Piecework - earn a set amount per item.

Getting Paid For Your Work

Financial Terms Important Terms for Life and for Spreadsheets.

Careers Take-Home Pay Housing and Vehicle Allowance.

Alberta Labour Laws CALM 20. Alberta Labour Laws Your Employer is responsible for: Giving you a Statement of Earnings. This includes: The pay period covered.

Personal Finances. You got the job… now what? Employer will get you to fill out two TD1 forms. One is a federal form and the other is a provincial form.

Write This Down Tax Returns Who has to file tax return by 4/15/2014? FederalState Only if you made more than certain amount in 2013 Living w/ parents Single,

Basic Goals of Payroll System  Prepare and issue payroll checks  Produce records for accounting purposes and reporting to government and management.

What is the difference between a wage and a salary?

W4 Tax Form. When Do You Get a W-4 Form? for new employment, starting a new job.

Creating a Budget Mr. Machula. Creating a budget Gross Monthly Income Income Tax EI and CPP Deductions Total Monthly Expenses Preliminary Monthly Balance.

We Need Taxes For….. National Defense Police and fire protection Health services Public Education Water, gas and electric systems Environmental protection…

Taxes and Your Paycheck Career and Financial Management 2.

How to fill out the Parent’s Financial Statement Section 3 – Deductions.

GETTING PAID WHERE DOES MY MONEY GO?. PAY CHECK DEDUCTIONS Deductions Video What is the difference between gross and net income? What are state taxes.

Paycheck Tax Deductions Lesson 3-1. What is the Definition of Tax? Compulsory charges imposed on citizens by local, state, and federal government.

A common belief among many Canadians is that they pay more in income tax than their American counterparts. Even politicians in Parliament have used this.

2.1 F EDERAL I NCOME T AX FIT: (Federal Income Tax) is money withheld by employers. Required by law Amount is dependent on how much is made Taxes are used.

Income Taxes for Individuals Calculated as a percent of your taxable income Taxable Income = Gross Pay - Pre-Tax Deductions (examples: retirement plan.

MATHPOWER TM 11, WESTERN EDITION Chapter 9 Personal Finance.

Pay Cheque Definitions. Gross Income (pay/earnings) The amount of income/earnings, for any pay period, before deductions.

Understanding your paycheck

Sub-Unit 32: Paying Employees

Pay stubs Personal Finance 30L.

How tax is calculated on your Taxable income Example Your gross income = $126,000 Your deduction = $ 6,000 Taxable income = $120,000.

Pay-Cheques! Calm 20.

Ms. Alltucker Accounting II

The Guarantees of Life Taxes.

Gross Pay, Deductions and Net Pay

Tax Returns Who has to file tax return by 4/15/2014? Federal State

Payroll—A Dollar Earned

Income Tax and Deductions

Presentation transcript:

 Net income : Money you get after all deductions. (take home pay)  Taxable income : income that can be taken by the government (federal or provincial)

 -Sums of money taken off of your gross pay called deductions  -Net income (take home pay) is the amount remaining after deductions are taken from gross pay  -Some deductions like Canada Pension plan (CPP), Employment insurance premiums (EI) and income tax (IT) (provincial and federal) are required by Canadian Law.  -When an employee begins working at a job, they fill out a TDI form that identifies whether they are able to claim certain deductions that reduce their taxable income.

 Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions  Once you turn 18, and until you turn 70, you will make CPP or QPP contributions based on your pensionable employment income. Your employer is responsible for deducting these contributions and sending them to the CRA. If you worked in the province of Quebec, your employer will deduct QPP contributions instead of CPP contributions. The amount of your contribution (deducted each pay period) is calculated on an estimate of your pensionable earnings, including an exemption of $3,500 up to a maximum of $48,300. The result is then multiplied by the contribution rate. The contribution rate and the maximum amount that you can pay for the year may change from year to year.

 There is no age limit for EI contributions. These are also a percentage of your insurable earnings (generally gross pay). The employee’s EI rate and the maximum premium you pay for the year may change from year to year, and the rate in Quebec may be different from other provinces.

 Your employer or payer will determine the income tax, CPP/QPP, and EI premiums to deduct based on your total claim amount on the Form TD1, Personal Tax Credits Return that you completed. There is no annual limit to the total amount of income tax your employer or payer can deduct in a year. If you expect your total income for the year to be less than the total claim amount on Form TD1, you can ask your employer or payer not to deduct tax from your earnings. If you have multiple employers throughout the year, it is important that you complete Form TD1 for each employer. If your employer(s) deducts the correct amount of income tax, CPP/QPP, and EI premiums, you may not have to pay any additional payments at the end of the year. If you do not complete a Form TD1 for each employer, you may have to pay taxes at the end of the year.

 Find a computer:  Using the job that you picked yesterday find out what tax bracket you will be in. You will have to use your yearly salary to find which bracket you are in.  How much tax will be taken off?  After you looked up your dream job, now choose a entry level job where you make minimum wage and see the difference between tax brackets.  What does low income mean?