Description: Things are changing in personal taxation for Canadians in 2020 and these changes will show up in various deductions on your paycheque stub. Finance Minister Bill Morneau had told Canadians to expect significant tax cuts to help the middle class. But financial planner Janet Gray says she would not count on people noticing any change. For those in the middle class, tax reductions are less than $10 per bi-weekly paycheque. Add on slight changes in both EI and CPP, and many Canadians may not see a difference.
Date: December 31, 2019
1) Are you working part-time as you attend classes?
2) Do you examine your pay stubs closely or do you just take a look at the net amount going to your bank account by e-transfer?
3) Wiley’s Financial Accounting: Tools for Business Decision-Making, has a section dealing with payroll deductions in Chapter 10. What are the journal entries for paying employees and then remitting the payroll deductions to the government?