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Sep 5, 2020 4:32 PM UTC
Question

Some of my employees who are paid an hourly wage have 0 income tax deductions. Is this an error or is it due to them not working enough hours in the week?

This is in Ontario, Canada, and several hourly employees who worked around 12-17 hours per week in their first week of employment (last week) showed $0 for income tax deductions.

1 reply

Sep 7, 2020 5:29 PM UTC

Hi evanworksonproje,

 

Understanding payroll taxes and when they are deducted is a great way to make sure your payroll correct. I can help you with this.

 

The taxes that are deducted from every payroll is based on your TD1 form. If the amount being paid is under a certain amount it will not take out income tax. To find out more about the amounts I'd suggest contacting the CRA or checking on their website for more information.

 

Hope that helped.