Gross pay and deductions in Alberta

[messenger]

Hi all

One settles in Alberta

From a supposedly gross monthly income of 5000 what are the deductions?

I know its not the 5% tax that Ab imposes which to my opinion is the lowest in Canada.
How can one calculate his salary deductions?

Thank you
messenger

 

[newtone]

if your gross monthly is $5,000 then your gross yearly is $60,000

In the province of Alberta you'll be paying $12,536/year, therefore your after tax income (new income) will be $47,464

And so your net monthly income is $3,955

 

[messenger]

if your gross monthly is $5,000 then your gross yearly is $60,000

In the province of Alberta you'll be paying $12,536/year, therefore your after tax income (new income) will be $47,464

And so your net monthly income is $3,955

Thank you very much newtone
How did you calculate this? Is this including federal and provincial deductions? I also found a site that does this sort of calculations in case anyone is interested but some of terminology I do not comprehend: http://www.paycheckcity.com/canada/coeatonca/cacalculator.aspx

Have a great day

 

[newtone]

I couldn't find the link but this is a more accurate one

http://www.tax-services.ca/income-tax-calculator-canada/

 

[scorpion_ca]

In addition to tax, your employer would deduct mandatory CPP and EI from your paycheck. As a result, your net monthly income would be lower than $3,955. You might get around $3,408.

https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English

if your gross monthly is $5,000 then your gross yearly is $60,000

In the province of Alberta you'll be paying $12,536/year, therefore your after tax income (new income) will be $47,464

And so your net monthly income is $3,955

 

[messenger]

In addition to tax, your employer would deduct mandatory CPP and EI from your paycheck. As a result, your net monthly income would be lower than $3,955. You might get around $3,408.

https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English

Thank you very much scorpion_ca
I will take this in consideration.

Regards
messenger

 

[Rossei]

Although I'm not from Alberta; I've created my own Excel file that says your net income would come down to $3383.50/month for $5000.00 gross income for the year 2013.

Breakdown of Deductions (based on $60,000 yearly income):
Federal Tax = $10150.73
Provincial Tax = $ 6000.00 (10% for Alberta)
CPP Contribution = $ 2356.20
EI Contribution = $ 891.12
Total Deductions = $19397.05

Net Income = $60000.00 - $19397.05
= $40,601.95 /year
= $3383.49 / month

FYI, CPP & EI contributions may vary throughout the year. They are normally high during the beginning of the year, goes bit down after mid-year and go to nil in the last quarter when you meet the maximum contribution set by CRA. Hence, they are harder to calculate accurately.


I collect data/info from CRA:
http://www.cra-arc.gc.ca/tx/llrts/menu-eng.html

 

[scorpion_ca]

You could easily use the above link I posted, which was Canada Revenue Agency Payroll Deductions Online Calculator instead of creating own excel file. ;D

Although I'm not from Alberta; I've created my own Excel file that says your net income would come down to $3383.50/month for $5000.00 gross income for the year 2013.

Breakdown of Deductions (based on $60,000 yearly income):
Federal Tax = $10150.73
Provincial Tax = $ 6000.00 (10% for Alberta)
CPP Contribution = $ 2356.20
EI Contribution = $ 891.12
Total Deductions = $19397.05

Net Income = $60000.00 - $19397.05
= $40,601.95 /year
= $3383.49 / month

FYI, CPP & EI contributions may vary throughout the year. They are normally high during the beginning of the year, goes bit down after mid-year and go to nil in the last quarter when you meet the maximum contribution set by CRA. Hence, they are harder to calculate accurately.


I collect data/info from CRA:
http://www.cra-arc.gc.ca/tx/llrts/menu-eng.html

 

[Rossei]

You could easily use the above link I posted, which was Canada Revenue Agency Payroll Deductions Online Calculator instead of creating own excel file. ;D

LoL.

Well, I like to make it easy for me. And my calculator has only 1 field to input (salary).

 

[messenger]

Thank you all very much for contributing these helpful info!

PS. I thought the provincial tax for AB was only 5%?

Regards