1.2.1 Understanding your pay stub

For most of us, our main source of income is our job. Most people get paid through a biweekly or semi-monthly paycheque. But you may get paid irregularly if you do contract, consulting or seasonal work, or odd jobs.

Below is a sample paycheque and pay stub. This is for a person who gets paid an hourly wage of $17. (Note that in Quebec, paycheques also include deductions for provincial taxes.)

Paycheque for $1,146.99

Sample pay stub

Earnings Rate Hours Earnings this period Year to date Footnote 1
Regular Footnote 2 17.00 84 1,428.00 8,845.95
  Income tax   - 184.90 1,105.99
  EI Footnote 3   - 25.42 159.02
  CPP/QPP Footnote 4   - 70.69 404.49
  Other Footnote 5      
Full deposit     1,146.99  
Net pay Footnote 6     $1,146.99  

Your paycheque may show a deduction for vacation pay. This is a portion of your salary (ranging from four to six per cent) that you are entitled to receive as part of your pay. For most full-time employees, this equals two to three weeks of vacation annually with pay. Casual and part-time employees often receive their vacation pay on each paycheque. Employers usually keep vacation pay in a separate fund and pay it to you when you take your vacation. For some types of employment, it may show on the pay stub.

Go to the Canada Revenue Agency’s information on paycheque deductions and income tax for more details. In Quebec, visit Revenu Québec.

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