How to take A-levels from home?

Is this correctly how you calculate the take home pay?

• According to the government websites the CPP contribution is %4.95 of income, EI is %1.73, and the federal tax depends on the gross pay. So lets say the take home pay at the end of the month is $1500. Does this mean the federal tax take away percent for the month is calculated as if you made 1500 a month for the entire year? The amount that would be at the end of the year is 18000 and when you calculate the federal tax percent would be on the federal tax calculator website that would be %8.88. So 1.73 + 4.95 + 8.88 = %15.56. So that means the take home pay would be 1500 - %15.56 = amount deducted: 233.4 which makes the take home net pay 1266.6 but then they give back and keep the real amount of federal tax that was taken away after you give in your t4. This is all really how it's done?

• Answer:

  It would have been better if you had mentioned the province you live in. So, here are the numbers for your scenario as if you lived in Ontario. $1500 gross minus $59.81 CPP and $25.95 EI and $102.46 tax (which is actually federal and provincial combined). Means... $1,311.78 net. CPP is almost the calculation you mentioned... CPP is actually [Gross - ($3,500.00/pay periods per year)] times 4.95%. So, after all 12 paycheques and the 18,000 only 14,500 will actually have the 4.95 calculated. So, $717.75 on $18,000 the real percentage ends up being 3.99%.