How do paycheques work?
So I've worked 66 hours this month, with a rate at $9/h for a grand total of $594. Excited, I went to the bank to make my deposit - only to find out I have about $298 after income tax deductions. Does this seem about right? I was told that 1/3 of your income goes towards paying taxes for governments.. so how come my friend makes $500/month yet only $50 is deducted from her pay? My mom makes $1200 (she works as a waitress) and no tax deductions! Should I fill in a tax return form? Or no? I'm trying to save up my money for college/travelling etc. but seems like it's not gonna go the way I planned.
I just want to know how everything works, since I have no clear idea.. and possibly some answers please! Thank you in advance.
Update:Sorry, forgot to mention - I live in BC and get paid bi-weekly. Also, I am 17 in case that helps!
Comments
Something is wrong because half your check should not go to taxes. Just speak to your accounting department and have them look at it for you. Sometimes you get put into the wrong tax bracket.
Keep in mind that if you pay more than you should be, you will get the money back when you file your taxes. That doesn't help you today of course lol but it does give you a little peace of mind. In the same respect, if you pay too little, you have to pay when you file.
No mention of your province or the pay periods (PP).
If you get paid monthly (12 cheques throughout the entire year) $594 isn't enough to pay taxes. There would be CPP and EI (roughly $15 and $11 respectively) but no taxes.
If you got paid weekly (52 cheques throughout the entire year) $594 would have roughly $54 in taxes and roughly $26 and $11 for CPP and EI respectively)
Even if you got paid weekly, your cheque should have been ~$480 instead of $300.
Have your mom (or someone) look at the cheque stub.
Regardless of how the money got into your account, the employer must give you a slip that shows your deductions. So ask for it. That's the only way you'll know how you got paid.
However, based on what you posted, the math works out properly. You earned $600 in the month, and in one pay period (half the month), you were paid $300. Sounds right to me. On $600 of monthly earnings for a 17-year-old, there should be almost nothing deducted.