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• Bonuses• 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

Regular PayHours x rate

Employer’s contributionto benefits

Current and yearly

pay

Vacation Pay4% x

accumulated wages

Mandatory Deductions

Examples of Net Pay

What is regular pay and net pay?

Try it on your own

• Complete the Pay stub exercise