Accounting / Taxation question...

[Mango]

I've been working a part time job and plan on doing so until a wrap up with my post secondary in the next few years. With that said, I just noticed something on my most recent pay stub.

Under tax data, my federal net claim amount is actually less than my year to date earnings. Would it be possible to explain how the federal net claim amount works? There's also a different amount under Alberta next claim amount as well.

I've tried searching the government's website, but it's not overly helpful.

Thank you.

[jolinar of malkshor]

Sounds weird...but each person is has a basic personal exemption. Each province is different. The Fed is somewhere close to $9,000 and Alberta is I think $14,000. So you can make that much before you start to get taxed. Maybe that is what it is.

[Bobblehead]

"Federal Net Claim" is a strange description - is that really what your stubs say?

Usually you should just see things like Total income, Tax Deducted, CPP Deducted, EI Deducted, and perhaps other things (things like Bonus, Health Care, Alberta Health, Pension Plans, etc.)

[Mango]

Originally Posted by Bobblehead

"Federal Net Claim" is a strange description - is that really what your stubs say?

Usually you should just see things like Total income, Tax Deducted, CPP Deducted, EI Deducted, and perhaps other things (things like Bonus, Health Care, Alberta Health, Pension Plans, etc.)

Agreed! I never noticed this little section of my pay stub until today. It's fairly small, located in the top right hand corner. It's titled "Tax Data" with the sub category of "net claim amount" and an amount for federal and an amount for Alberta.

[Bobblehead]

No idea what that may be.

Your source deductions for tax purposes are laid out in payroll tables (unless you fudge your TD1), and your employer can't know what all your sources of income (and deductions) are.