Annual Salary Missing In Reference Letter

[Fate69]

My previous employer forgot to write the total annual salary in the reference letter. Is this going to cause problems for OOPNP?

Thanks.

 

[Nightrocker]

My previous employer forgot to write the total annual salary in the reference letter. Is this going to cause problems for OOPNP?

Thanks.

Can't you ask them to edit the letter and resend you? If not, you can attach the payslips, tax receipts, offer letter, anything that can prove that your work experience was paid. But most preferred option is getting it on the letter.

 

[Fate69]

Can't you ask them to edit the letter and resend you? If not, you can attach the payslips, tax receipts, offer letter, anything that can prove that your work experience was paid. But most preferred option is getting it on the letter.

Alright. I'll try to contact the previous employer. So the annual salary should match the number on T4, right?

 

[Nightrocker]

Alright. I'll try to contact the previous employer. So the annual salary should match the number on T4, right? Not sure the T4 shows your annual salary.

 

[JoacRy]

Alright. I'll try to contact the previous employer. So the annual salary should match the number on T4, right?

Wrong. T4 reflects what was actually paid to you from the date you started until the end of the Income Tax Year. If you worked less than 1 Income Tax Year you will receive less than the amount as stated for your annual salary in your offer letter of Employment. To illustrate here is an example.

Situation where person has worked full tax year:

Annual Salary: $80,000 CAD
Working Duration: 1 January - 31 December
T4 Gross Wages: $80,000 CAD
Amount that should be in letter: $80,000 CAD

Situation where person has not worked full tax year:

Annual Salary: $80,000 CAD
Working Duration: 1 July - 31 December
T4 Gross Wages: $40,000 CAD
Amount that should be in letter: $80,000 CAD (mention that this is an annual gross amount)

If you need any help please let me know.

 

[Fate69]

Wrong. T4 reflects what was actually paid to you from the date you started until the end of the Income Tax Year. If you worked less than 1 Income Tax Year you will receive less than the amount as stated for your annual salary in your offer letter of Employment. To illustrate here is an example.

Situation where person has worked full tax year:

Annual Salary: $80,000 CAD
Working Duration: 1 January - 31 December
T4 Gross Wages: $80,000 CAD
Amount that should be in letter: $80,000 CAD

Situation where person has not worked full tax year:

Annual Salary: $80,000 CAD
Working Duration: 1 July - 31 December
T4 Gross Wages: $40,000 CAD
Amount that should be in letter: $80,000 CAD (mention that this is an annual gross amount)

If you need any help please let me know.

Thanks for you detailed explanation. I contacted the previous employer, she couldn't remember my annual salary. My hourly rate at that company was $15 per hour, and working 30-35 per week. My working hours per week changed time to time, so how should I calculate my annual salary? Thanks

 

[JoacRy]

Thanks for you detailed explanation. I contacted the previous employer, she couldn't remember my annual salary. My hourly rate at that company was $15 per hour, and working 30-35 per week. My working hours per week changed time to time, so how should I calculate my annual salary? Thanks

Annualized Salary (Non-Leap Year):

$15 ph @ 30hrs per week = $23,400 Annually
$15 ph @ 31hrs per week = $24,180 Annually
$15 ph @ 32hrs per week = $24,960 Annually
$15 ph @ 33hrs per week = $25,740 Annually
$15 ph @ 34hrs per week = $26,520 Annually
$15 ph @ 35hrs per week = $27,300 Annually


Annualized Salary (Leap Year):

$15 ph @ 30hrs per week = $23,513 Annually
$15 ph @ 31hrs per week = $24,293 Annually
$15 ph @ 32hrs per week = $25,074 Annually
$15 ph @ 33hrs per week = $25,854 Annually
$15 ph @ 34hrs per week = $26,637 Annually
$15 ph @ 35hrs per week = $27,414 Annually

I have calculated this on a base level using an Assumption of 2 weeks Annual Leave @ 4% per annum Holiday Loading
To be conservative I have incorporated a 1% all-inclusive amount for 'Statutory' Holidays'

If my assumptions are wrong I am happy to re-calculate. Let me know if you need any help.

 

[ozlis]

If you were paid hourly, it is perfectly fine to list that and the standard hours worked.

So many other things come into your annual salary (overtime, unpaid leave etc) that they won't exclusively use that as a wage indicator.

 

[Fate69]

Annualized Salary (Non-Leap Year):

$15 ph @ 30hrs per week = $23,400 Annually
$15 ph @ 31hrs per week = $24,180 Annually
$15 ph @ 32hrs per week = $24,960 Annually
$15 ph @ 33hrs per week = $25,740 Annually
$15 ph @ 34hrs per week = $26,520 Annually
$15 ph @ 35hrs per week = $27,300 Annually


Annualized Salary (Leap Year):

$15 ph @ 30hrs per week = $23,513 Annually
$15 ph @ 31hrs per week = $24,293 Annually
$15 ph @ 32hrs per week = $25,074 Annually
$15 ph @ 33hrs per week = $25,854 Annually
$15 ph @ 34hrs per week = $26,637 Annually
$15 ph @ 35hrs per week = $27,414 Annually

I have calculated this on a base level using an Assumption of 2 weeks Annual Leave @ 4% per annum Holiday Loading
To be conservative I have incorporated a 1% all-inclusive amount for 'Statutory' Holidays'

If my assumptions are wrong I am happy to re-calculate. Let me know if you need any help.

Awesome! I did get a 4% vocation pay.

 

[Fate69]

If you were paid hourly, it is perfectly fine to list that and the standard hours worked.

So many other things come into your annual salary (overtime, unpaid leave etc) that they won't exclusively use that as a wage indicator.

If I don't include the annual salary, will it be a reason to reject my application?

 

[ozlis]

You are having them list what you were paid in hourly format and an estimate on hours that you would have worked per week. If you were hired as an hourly employee, I think you will struggle to get your previous employer to list it as an annual salary.

Back the letter up with your payslips and T-4, not a problem.

 

[Fate69]

You are having them list what you were paid in hourly format and an estimate on hours that you would have worked per week. If you were hired as an hourly employee, I think you will struggle to get your previous employer to list it as an annual salary.

Back the letter up with your payslips and T-4, not a problem.

I have rechecked my payslips. It's actually salary-based. Some months 2400, some months 1800, also 2100 depending on the workload. I am really confused now what the employer should write for the annual salary :'(

 

[JoacRy]

I have rechecked my payslips. It's actually salary-based. Some months 2400, some months 1800, also 2100 depending on the workload. I am really confused now what the employer should write for the annual salary :'(

Monthly amount of $2,400 - Annual Salary of $28,800 - (4 months)

Monthly amount of $1,800 - Annual Salary of $21,600 - (4 months)

Monthly Amount of $2,100 - Annual Salary of $25,200 - (4 months)

Average (annualized) salary: $25,200

To be safe I would state the words 'pro-rated gross salary' (inclusive of vacation pay) amounts to $28,800. No need to mention specifics such as 'Income Tax Deductions', 'Statutory Employer Deductions' etc. BAck this up with payslips, and T4s. This would cover leap and non-leap years.

If you need any other help, please let me know.

 

[Fate69]

Monthly amount of $2,400 - Annual Salary of $28,800 - (4 months)

Monthly amount of $1,800 - Annual Salary of $21,600 - (4 months)

Monthly Amount of $2,100 - Annual Salary of $25,200 - (4 months)

Average (annualized) salary: $25,200

To be safe I would state the words 'pro-rated gross salary' (inclusive of vacation pay) amounts to $28,800. No need to mention specifics such as 'Income Tax Deductions', 'Statutory Employer Deductions' etc. BAck this up with payslips, and T4s. This would cover leap and non-leap years.

If you need any other help, please let me know.

Actually, there is a number $23840 in the income column of my T4. What about this?

 

[JoacRy]

Actually, there is a number $23840 in the income column of my T4. What about this?

As discussed previously the amount recorded as 'Gross Salary' in your T4 is the amount that was paid to you from the date you joined until the end of the Income tax Year (ie Dec 31). If you worked from 1 January - 31 December then the amount of $23,840 is correct.

Otherwise if you started working after 1 January then you need to 'Annualize' the amount. Hence why I gave you the 'Annualized' figures.