When starting a new job, particularly a FIRST job, we always look forward to discovering just how much will be deposited in our account every two weeks. The only important number is the amount of the deposit…or is it?
It is recommended to check all of the boxes on a payslip carefully in order to ensure that there are no errors and to understand the difference between your salary and what you actually receive.
Do you understand all of the acronyms that appear on your payslip?
To help you understand all of the acronyms, here is a list of amounts that you will find on your payslip:
Pay stubs will often differ from one employer to another so, if there are any acronyms or deductions that you don’t understand, speak with the company’s Human Resources Manager.
Additionally, payslips usually indicate cumulative amounts for each deduction. Therefore, your last payslip of the calendar year will give you a good idea of how much tax and deductions you have paid.
You can use these amounts to effectively manage your year-end financial planning. This will allow you to decide things such as whether or not it would be useful to contribute additional amounts to your RRSP before the beginning of March.
It is important to regularly check your payslip for any errors which your employer must correct. It is always possible to correct an error in the same tax year.
If you have children, you can also adjust the amount of tax deducted based on tax credits to which you are entitled. Speak with your Human Resources Manager!
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