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Income Tax Issue with Bonus Payment

Posted in General, and Unit 1

Members who have no earnings last week (during the week of Feb.15, 2021) may have
LITTLE TO NO INCOME TAX DEDUCTED FROM THEIR BONUS AMOUNT
(individual circumstances may vary)
This is based on Government rules and tax codes

So, that means that those members with no income will likely need to pay a significant amount come next tax-filing season.

 CPP and EI regular deductions Taken from the amount will be the based on the $7,250, roughly $500

The take home pay for some may be significantly more earnings than members might typically expect to receive

We highly recommend calculating how much tax you would normally be required to pay and save it for when the tax bill comes in
a TFSA might be a useful option for securing the cash that will be required at Tax time