Figuring out your Paycheck

Part 1: Making Ends Meet Series

Can you figure this out?

What is the net pay?

Paycheck Formulas

Regular Pay = regular hours x hourly rate

Overtime = overtime hours x hourly rate x 1.5

Double overtime = hours x hourly rate x 2

Vacation pay = 4% x accumulated wage pay

Net Pay = Gross Pay – Deductions

Types of Payment

• Wages/Salaries• Commissions• Overtime• Holiday pay• Payment in lieu of benefits• Allowances

– Clothing safety clothing, uniforms– Travel mileage– Moving

Deductions

• Mandatory deductions– Canada Pension Plan (CPP)– Employment Insurance (EI)– Income Tax (Federal and Provincial)

• Other Deductions– Health plans– Supplemental pension or savings plans– Union dues

Tips for Getting Paid

• Keep track of your own hours on a calendar use this as a record of the hours you work

• Proofread your pay stub. Make sure the hours are the same as your records

• Check rates, benefits and allowances make sure you are not getting underpaid or paying for unwarranted deductions

Pay and Budgeting

• Always budget for net pay, not gross pay (usually wages)

• Always prepare for seasonal highs and lows in some economic sectors– Save when times are good, so slow

months are not stressful ones

• Balance your payments so one paycheck does not always have a big hit.

Navigating a Pay check

Mandatory Deductions

Regular PayHours x rate

Vacation Pay4% x

accumulated wages

Employer’s contributionto benefits

Current and yearly

pay

Examples of Net Pay

What is regular pay and net pay?

Examples of Net Pay

What is regular pay and net pay?