Confused About All the Deductions on Your Paycheque? Here’s What They Mean

You’re a few weeks into your new job and payday has arrived. But reading your first paystub, it’s a little unclear what all of these deductions mean. After all, the exact amount of your biweekly direct deposit never came up in the interview process. Financial planning experts say understanding how deductions are calculated on a paycheque is vital for employees budgeting their money, especially those just entering the workforce or new to Canada. Employers are responsible for collecting certain mandatory deductions from an employee’s total earnings and sending those to the Canada Revenue Agency. Employees are credited for having paid those amounts when filing their annual tax returns....