What is this CPP?!!

(And other questions that may arise when you get your first paycheque)

Okay, here’s the thing: You’re entitled to minimum wage as a part-time worker and if you’re getting more, that’s a bonus. But you may find the math does not add up when you multiply your wage by the number of hours you worked. That’s because the government deducts money from every paycheque for:

• Canada Pension Plan (CPP): If you are under 18, your employer should not be charging for CPP contributions. Otherwise, every worker from 18 to 70 pays a percentage of each paycheque to CPP. The good news? When you retire, the government will send you a pension cheque.

• Employment Insurance (EI): A percentage of your income earned goes to a government fund. If you face unemployment in the future, that fund pays you a bi-weekly stipend to hold you over until you get another job (as long as you meet the eligibility criteria).

• Income tax: The government takes a bite out of every paycheque to cover your share of the services it offers. But if you made less than $13,808 (the basic personal amount for 2021) you won’t pay tax.

Other deductions: Particularly once you’re working full time, you may notice other deductions from your paycheque for things like private pension plans, health insurance premiums, union dues and professional fees.