Should I be worried about my paycheck?

Question

I have noticed that my paychecks have not been getting taxed. They pay stub I receive shows tax on it and the amount I should be getting paid, however when my work writes me my cheque they write the cheque before tax not after. Should I be worried about this?

I was told that in Ontario you can make up to $8000 and not have to claim taxes on it. I have also been told that you have to claim tax on pretty much everything. Which is true?

On a side note my pay stub shows that federal and provincial tax is 0. Shouldn't I be getting taxed both of these. . .If I was being taxed at all.

Answer 1

I dont' know as I don't live in Canada BUT if I were you I would be asking your Human Resources Dept. and check the website of your tax (we have irs) collectors and see what the anwswer is (or call) .   Other than that you might check with a tax preparer to see what you can expect near end of year.

Answer 2

It is true that if your annual income is less than the basic exemption, your employer is not required to withhold Fed or Provincial income tax. However, there should always be a deduction for EI premiums, and CPP should be withheld if your weekly earnings are greater than $67.

The link below is published as a guide for employers to know the correct amount to be withholding.

http://www.cra-arc.gc.ca/E/pub/tg/t4032o...

Answer 3

I would be worried and I would be checking it out. Especially as you and your employer are s pposed to be making

contributions to both ei and canada pension and it appears you are not. this could really turn around and bite you in the butt if you need to make use of e.i. or canada pension. get

on to your payroll people pronto and get them to explain why you are not being deducted.

Answer 4

The annual basic personal tax exemption amounts federally and for Ontario are as follows, under which you do not have to pay taxes:

Basic Federal Personal Exemption$9,600

Basic Ontario Provincial Personal Exemption$8,681

Sometimes, your employer does not withhold taxes possibly because your income will not exceed the above exemption amounts (based on your TD1 filed).  This frequently happens to casual workers or summer students.  

If your salary is higher, you may check with the following link to see amount of taxes that u have to pay:

http://www.morningstar.ca/globalhome/Mar...