Quote:
Originally Posted by Weitz
Common misconception. I know guys who used to calculate their overtime because they thought if they went over x amount ALL their money was then taxed at that %. Which is obviously incorrect. I mean you will pay more tax on your additional money, but its only 4.5 or 5.5% (can't remember the new alberta taxes that are staggered so just assuming its flat still).
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I think it's more that if you don't set up your tax deduction right at the second job, and if you're not paid a lot, they may not take enough, or any off at the source, meaning when you add it all up you have to pay a significant chunk. It's not more than you would have paid, but it's a bit of a shock when you see that large amount owing on your tax return.
The key is to communicate with the 2nd employer that you have another job and to take tax off, since the first set of credits/deductions are given to you by your first employer.