Author Topic: Entitlement culture  (Read 402 times)

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Offline BC_cheque

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Re: Entitlement culture
« Reply #15 on: September 13, 2017, 09:57:38 pm »
It sounds about right to me.  Almost exactly 1/3 of my monthly paycheque goes directly to taxes and deductions.  Add in the taxes I pay on everything else during the month and I bet it would be about 40% of my income that goes to the government.

I've worked in accounting, including HR and payroll for over 15 years.  I hear this kind of gripe all the time from employees, and honestly, it always comes down to a miscalculation which can easily be explained.

I've attached the screen-shot for you for payroll income tax-deductions for someone in Ontario (highest taxed province) who makes 50K, 100K, 150K, 200K, 250K and 300K. 

As Cybercoma said, CPP and EI and are not taxes.  The former is for your retirement and the latter is insurance should you need. 

Also to add to that, they are only deducted on the first ~$50K, so it's not a straight deduction throughout the year for high-earners, and if you're making $50K/yr you're only paying about 16% total tax, so it brings your overall total deduction to ~22%.

Before I break it down, please remember these amounts do not include any tax credits whatsoever.  As you are aware, you are likely to get a refund when you do your taxes at the end of year.  But even at the maximum, before any amounts are returned, you'll see the following:

(calculated semi-monthly)

50K/yr = 337/2083 = 16%
100K/yr - 1029/4166 = 24.7%
150K/yr = 1943/6249 = 31%
200K/yr = 2942/8322 = 35%

These two I'll have to post separately as they exceed my attachment maximum:

250k/yr = 4046/10416 = 38%
300k/yr = 5162/12500 = 41%

Basically, unless you're in the 1% making 300K/yr, you're not paying 40% tax.  If you make less than 300K and you are paying 40% tax, you need to discuss it with your HR department ASAP!

« Last Edit: September 13, 2017, 10:03:21 pm by BC_cheque »
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