The pay stub decoder
A pay stub reproduced at half-page size, with every line labelled and a blank column for their own numbers.
| Line on the stub | What it is | Mine |
|---|---|---|
| Gross pay | Hours × your rate. The number on the job ad. | $ |
| Income tax | Federal and provincial, withheld and sent on your behalf. Estimated as if you worked all year at this rate — so summer-only work is usually over-withheld. | $ |
| CPP | Canada Pension Plan. Starts at 18, once earnings pass a basic exemption. Buys a future entitlement. | $ |
| EI | Employment Insurance. From the first dollar. | $ |
| Other deductions | Uniform, union dues, benefit plan. Anything unexpected here is a question to ask. | $ |
| Net pay | What actually shows up in your account. | $ |
| Year-to-date | Running totals since January — these become your T4. | $ |
Two boxes at the foot:
Check it yourself. Work out gross from your own hours and rate. Add up every deduction. Subtract. Your number should match theirs to the cent. If it does not, you have either learned something about the stub or found a payroll error — both worth twenty minutes.
The sentence to remember for the rest of your life. When somebody quotes you a salary, that is gross. Before you believe anything about what you can afford, work out the net properly. People sign leases against the wrong number.
Not on the stub and worth knowing:
- Is my vacation pay added each cheque, or accrued and paid when I take time off?
- What is the statutory holiday pay rule in my province?
- Am I getting a stub every pay period? (You are entitled to a record of your own pay.)