Numbers on a pay stub

The Financial Consumer Agency of Canada (FCAC) has a page on starting a first job. It notes that reading a pay stub can be confusing and that most stubs show pay before and after deductions.

Gross pay is the amount before taxes and other payroll deductions. FCAC says it may also include commissions, bonuses, vacation pay, or overtime.

Net pay (take-home pay) is the amount after those deductions. FCAC says this is the amount deposited to a bank account or written on a paycheque.

Your employer may deduct income tax, Employment Insurance (EI), and Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, and sometimes other amounts such as benefits, savings-plan contributions, or union dues. This course will not tell you how much tax you should pay, whether you qualify for EI, or how to file a return. For SIN and CRA My Account navigation, see the existing LearnHere course on that topic.

Numeracy practice on a stub:

• Find the gross amount and the net amount.
• Check that net is smaller than gross (if there were deductions).
• If you are paid by the hour, multiply hours × hourly rate and see whether that matches the regular-pay line (ask payroll if it does not).

FCAC also writes about budgets, debt, and savings on that page. Those money decisions are outside this course. Use official FCAC tools later if you want money-management information, or ask a qualified person.