Taxes in Canada

Deductions and taxable benefits in Canada
Regardless of the fact that you are a Canadian citizen or a permanent resident, when you will be hired, your employer will take away money from your pay check to pay for the following.

1. Income tax:
All Canadian residents who are old sufficient to go to work must file an income tax return each year, whether they got any money or not. That is the rule. If you are working for an employer, a proportion of your pay check will be subtracted and sent to the federal government to cover the income tax that you have to pay. If extra is deducted, you will get a repayment. If you paid too small, you will have to give more. This cash helps disburse the cost of government services.

2. Canada Pension Plan:
A little part of your income check goes into this plan. When you give up work in old age, you will be given a monthly pension from the federal government. The quantity of that amount will vary according to how many years you worked in Canada before retiring and what your income was.

3.Employment insurance:
When you are functioning at work, a little percentage of your pay check will be subtracted each month to put your name in the Employment Insurance Account. Your employer makes a payment to the account as well. Employment insurance gives cash to adequate, jobless Canadian residents for a short time, at the same time as they look for a new job or get some training to learn new skills.

4.Taxable benefits:
Your employer might give some benefits such as special medical care, life insurance, a private pension plan or a dental plan that are taxable.

5.Union dues:
If you are in a union, and the union has an accord with your employer, some cash will be subtracted to pay for the union dues.