Figuring out your Paycheck Part 1: Making Ends Meet Series

Can you figure this out? What is the net pay?

Paycheck Formulas Regular Pay = regular hours x hourly rate Overtime = overtime hours x hourly rate x 1.5 Double overtime = hours x hourly rate x 2 Vacation pay = 4% x accumulated wage pay Net Pay = Gross Pay – Deductions

Types of Payment Wages/Salaries Commissions Bonuses Overtime Holiday pay Payment in lieu of benefits Allowances –Clothing  safety clothing, uniforms –Travel  mileage –Moving

Deductions Mandatory deductions –Canada Pension Plan (CPP) –Employment Insurance (EI) –Income Tax (Federal and Provincial) Other Deductions –Health plans –Supplemental pension or savings plans –Union dues

Tips for Getting Paid Keep track of your own hours on a calendar  use this as a record of the hours you work Proofread your pay stub. Make sure the hours are the same as your records Check rates, benefits and allowances  make sure you are not getting underpaid or paying for unwarranted deductions

Pay and Budgeting Always budget for net pay, not gross pay (usually wages) Always prepare for seasonal highs and lows in some economic sectors –Save when times are good, so slow months are not stressful ones Balance your payments so one paycheck does not always have a big hit.

Navigating a Pay check Regular Pay Hours x rate Employer’s contribution to benefits Current and yearly pay Vacation Pay 4% x accumulated wages Mandatory Deductions

Examples of Net Pay What is regular pay and net pay?

Try it on your own Complete the Pay stub exercise