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Taxes on pay cheque
Expert: Fred Watkin CA
Charli asked:
I work full time during the summer months and drop down to part time during the rest of the year because I am a student. Therefore when I ask for my vacation pay, it is usually when I go back to school or at Christmas time. It seems however that when I get my vacation pay it is quite lower than I expect, due to taxes. Am I able to request that no taxes be taken off that vacation pay?
Fred Watkin CA answered:
An employer is required by law to withhold source deductions. Income taxes, EI and CPP contributions are required to be deducted from an employee's paycheque.
About the author
Fred Watkin is a chartered accountant with a small boutique CA firm in Brampton. His firm does tax planning, business development, R&D, and compliance services for individuals and small to medium sized businesses in Ontario. The company website is www.watkinassociates.com