The Tax Resources Blog

Posts Tagged ‘salary’

How Much Tax From Salary

Question: How much do students get deducted (taxes, etc.) from their salary?

I have just gotten my first job and I start this Monday. Of course with every job comes the privilege of spending it on goods/services you want and yes, I’m already planning that out As a 17 year old Student, I am aware that the amount that I get deducted is small, but does anyone know the amount?

P.S. I live in Ontario, Canada.

Answer: The amount of tax that gets withheld will depend on your gross amount of earnings for your pay period. You’re too young to contribute to the Canada Pension Plan, but you will be required to pay premiums to the EI fund at a rate of 1.71%. This rate will apply to the first dollar earned, but if your total earnings for 2008 is less than $2,000, you’ll get this back when you file a Tax Return.

You may have to pay Federal and Provincial Income Taxes, but there are exemptions that you would be allowed to claim. Your employer should have had you fill in a TD1 form when you were hired.

If you want to get an estimate of the taxes that should be withheld, follow the link below:

http://www.cra-arc.gc.ca/pdoc

Salary Sacrifice and Fringe Benefit Tax