Group RRSP's at work?

Question

I was told that if I put a $100 RRSP deposit off of every cheque, that $100 isn't actually coming off my cheque, it costs me less, or how ever you want to put it.

But when I get my pay stub it shows that $100 went to RRSP and that is what came off of my cheque.

What could have they (Payroll/Accountant) meant when they said it would be less then $100 coming off my cheque for a $100 RRSP??? (Hope that meade sence)

Answer 1

I am not sure I understand 100% what you are asking but here is what I think is happening.

Your work may be adding in an additional amount (in addition to what you would normally get paid) in order to cover the RRSP deduction off of your cheque. I know some places contribute to the RRSP fund....for instance if you contribute $50 they may add an additional $50 on your cheque which goes to the RRSP.

I would calculate the hours that you are working and divide it by your gross pay to see if it works out, as I have said your work may be adding in extra to contribute.

If you are still confused I would contact your payroll and ask them to explain again.