Questions for Canadians (fed. budget)

iVillage Member
Registered: 04-10-2003
Questions for Canadians (fed. budget)
7
Wed, 02-04-2009 - 7:38am

Canada just passed its federal budget, and I am wondering if any Canadians on this site know how it will impact? Employment insurance premiums have been frozen but I'm not sure what that means (will I see more money on my paychecks or will it just stay the same for the next two years?) The two lowest tax brackets have been increased so again, I'm not sure what this means to me? My guess is that it will get slowly phased in over the rest of the year so I may notice an extra $5


Bex -

iVillage Member
Registered: 07-06-2003
Wed, 02-04-2009 - 8:14am

Hi Bex,


With regard to the EI being frozen,

Kassandra

"It is said that life has its peaks and valleys.  The challenge is to accept them equally and experience them

iVillage Member
Registered: 08-21-2006
Wed, 02-04-2009 - 11:05am

From what I understand, we're only seeing a bit of a difference in our take home pay each week. However on our taxes next year we'll be seeing the up to $10,000 tax credit for home renovations, that could transfer into up to $1350 back on your taxes. Also it will be encouraging people to actually do renos that they might have put off. It will mean more contractors, and general labourers working, more lumber and hardware sales. It could even translate into more classes at local colleges teaching people how to do simple home renos. Also the provincial (Ontario, not sure

iVillage Member
Registered: 08-24-2007
Wed, 02-04-2009 - 5:54pm

Hi Bex!


I have an extra $30 on my paycheque too (from my bus pass).

Kate


empty purse

iVillage Member
Registered: 04-10-2003
Wed, 02-04-2009 - 9:24pm
I think you're right. The consensus at the office is that they are going to take EI premiums, but at a locked in rate (usually the max contribution goes up every year so it will save a little bit). I don't think we'll see anything until October (if you max out your contributions). That was such a shocker when I went from my pay in Decemner (no EI and no CPP cause i had maxed out both) to having them taken off againl. It was a difference of over $120 a pay!!! We really are taxed to death!!!

Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 07-26-1999
Wed, 02-04-2009 - 10:09pm

Here's a link to the Revenue Canada Employer's Guide to payroll deductions (tells employers how to deduct everything and the rates). I know it might seem deathly boring, but there is an incredible amount of information available in plain language for free if you are interested in learning how your take-home pay gets calculated...

http://www.cra-arc.gc.ca/E/pub/tg/t4001/t4001-e.html#P639_62208

The following link will link you directly into the payroll deduction tables for EI for 2009 for all provinces except Quebec. The bottom of each page states the yearly salary maximum, the employee's yearly maximum,and says the EI deduction rate for 2009 is 1.73%

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/t4032/jn09/prmms-b.pdf

Anyone can also request the Canada Revenue Agency to mail them free of charge the payroll deduction table in paper format if you are curious but don't want to struggle with the online deductions calculator. The publication is the T4032 (choose by your province). I've received them mailed to me free of charge and it arrived quickly. I used to do payroll for awhile which is why I know this...but it is nice to have the guide, especially if you don't trust the person who does your payroll. A

iVillage Member
Registered: 04-10-2003
Thu, 02-05-2009 - 10:44am
Thanks! Yes it makes sense. Every year the max contribution rate goes up and the percentage can change. In 2009 the maximum insurable earnings are 42,300 at 1.93%. Every paycheck they take off

Bex -

iVillage Member
Registered: 07-06-2003
Thu, 02-05-2009 - 7:12pm

I found out from work that my initial musing was a pipe dream...although I had the feeling that they wouldn't not just let us stop paying into EI at all given the potential increase of Canadians who will need to use EI due to impending layoffs...oh well thank god I still have a good job to go to every morning!


Kassandra

"It is said that life has its peaks and valleys.  The challenge is to accept them equally and experience them