If you have a job, you receive your salary through the monthly, bi-weekly or weekly payroll. But do you know what is payroll and how is it calculated? How do you calculate your take-home pay? How do you calculate your payroll deductions?
Payroll is the process where the employer calculates the wages and distributes it to the employees. The company withholds taxes, CPP and EI contributions from the paycheque, and the remaining amount is paid to the employees.
In Canada there are federal and provincial income taxes paid, while CPP is a contribution to the Canada Pension Plan, and EI is a contribution to the Employment Insurance program.
