Understanding your salary and payroll deductions in Manitoba

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How do people in Canada receive money for their jobs?

It might be the same way in your home country. Most businesses pay their workers every week or every two weeks. In Manitoba, we follow Employment Standards. It says “workers must receive their pay at least twice a month. They must get it within 10 working days after the end of a pay period.” Workers can receive their pay through paycheques. But these days, most workers get their pay directly in their bank accounts.

What might be very different in Canada are the money taken out of your pay. These are called payroll deductions.

How much do you really earn?

The money you ask for as your pay will be less when you get it. Why? Your employer will take out some money for taxes. They will also take out money for the Canada Pension Plan (CPP) and Employment Insurance (EI). Some companies have group insurance, group pension plan or group retirement plan, union membership, and other benefits. You might need to pay for these too.

Employers have to take out CPP and EI money of their workers’ pay. They also have to contribute the same amount of money to the Canada Revenue Agency (CRA). The CPP money is for your pension when you stop working (usually when you are 65 years old). The EI money is to help you if you lose your job or can’t work.

For CPP, the government decides how much bosses and workers have to pay every year. For EI, the rate is 1.58 per cent and the most you can earn and still get EI is $60,300 (in 2022).

You can look at these Payroll Deductions Tables – CPP, EI, and Income tax deductions for Manitoba. They show you how they work out these deductions for 2023.

Keeping records

In Manitoba, employers must give a pay slip to their workers when they get paid. This can also be online. Pay slips need to show:

  • The normal pay and the number of normal hours worked in the pay period.
  • The extra pay and any extra hours worked.
  • All money taken from wages, with a date and reason for each deduction.
  • The total amount of money paid to the worker.

Besides your pay slip, your boss will also give you a T4 Statement of Remuneration Paid. This is a record of the money paid by an employer to a worker during a year. The T4 is sent online or in printed form by February. You will need your T4 to file your taxes.

Knowing your pay and deductions makes sure you understand your earnings. This helps you handle your money well. If you have questions about your pay or pay slip, you should ask your employer. Stay informed, keep your records, and make the most of your hard-earned money in Canada.
Sources: Understanding payroll deductions as a newcomer to Canada, Arrive; and Paying wages and keeping records, Employee Standards, Government of Manitoba. Accessed November 8, 2023.

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