Anatomy of a Canadian Pay Stub
Use the salary after tax calculator and the T4 slip guide to place pay-stub figures in filing context. Validate withholding details using what a TD1 form is and the payroll tax calculator.
| Section | What It Shows | Where to Find It |
|---|---|---|
| Gross pay | Total earnings before deductions | Top of stub |
| Earnings breakdown | Regular hours, overtime, vacation, bonuses | Earnings section |
| Statutory deductions | Income tax, CPP, EI | Deductions section |
| Voluntary deductions | Pension, benefits, RRSP, union dues | Deductions section |
| Net pay | Amount deposited to your bank | Bottom of stub |
| Year-to-date (YTD) | Cumulative totals for the year | Right column |
Common Pay Stub Codes
| Code | Meaning | Type |
|---|---|---|
| REG / REG HRS | Regular hours/pay | Earnings |
| OT / OT 1.5 | Overtime at 1.5x rate | Earnings |
| STAT / STAT HOL | Statutory holiday pay | Earnings |
| VAC / VAC PAY | Vacation pay | Earnings |
| SICK | Sick leave pay | Earnings |
| BON / BONUS | Bonus payment | Earnings |
| RETRO | Retroactive pay adjustment | Earnings |
| FIT / FED TAX | Federal income tax | Deduction |
| PIT / PROV TAX | Provincial income tax | Deduction |
| CPP / QPP | Canada/Quebec Pension Plan | Deduction |
| CPP2 | Second additional CPP contribution | Deduction |
| EI / QPIP | Employment Insurance / Quebec Parental Insurance | Deduction |
| PEN / RPP | Registered Pension Plan contribution | Deduction |
| RRSP | RRSP contribution (payroll deduction) | Deduction |
| GRP INS / BEN | Group insurance / benefits | Deduction |
| UNION | Union dues | Deduction |
| LTD / STD | Long-term / short-term disability premium | Deduction |
| PARK | Parking deduction | Deduction |
| GARN | Garnishment (court-ordered) | Deduction |
Statutory Deductions Explained (2026)
| Deduction | Rate | Applied On | Annual Max | Notes |
|---|---|---|---|---|
| Federal income tax | 15–33% | Taxable income | No cap | Progressive brackets |
| Provincial income tax | 4–25.75% | Taxable income | No cap | Varies by province |
| CPP (base) | 5.95% (employee) | Earnings $3,500–$73,200 | ~$4,034 | Employer matches |
| CPP2 | 4% (employee) | Earnings $73,200–$81,200 | ~$320 | Employer matches |
| EI | 1.64% (employee) | Earnings up to $65,700 | ~$1,077 | Employer pays 1.4× |
| QPP (Quebec) | 6.40% (employee) | Similar to CPP | ~$4,640 | Higher rate than CPP |
| QPIP (Quebec) | 0.494% | Insurable earnings | ~$450 | Quebec parental insurance |
Sample Pay Stub: $70,000 Salary (Biweekly, Ontario)
| Line | Amount |
|---|---|
| Earnings | |
| Regular pay (80 hours) | $2,692.31 |
| Deductions | |
| Federal income tax | −$297.45 |
| Ontario income tax | −$148.20 |
| CPP (base) | −$155.19 |
| CPP2 | −$0.00* |
| EI | −$44.15 |
| Group benefits (dental, health) | −$45.00 |
| Pension plan (5% match) | −$134.62 |
| Total deductions | −$824.61 |
| Net pay (deposited) | $1,867.70 |
CPP2 applies only after CPP base max reached (later in the year).
Annual Summary at $70,000
| Item | Annual Amount | % of Gross |
|---|---|---|
| Gross pay | $70,000 | 100% |
| Federal tax | ~$7,735 | 11.0% |
| Provincial tax (ON) | ~$3,853 | 5.5% |
| CPP | ~$3,955 | 5.7% |
| EI | ~$1,020 | 1.5% |
| Benefits | ~$1,170 | 1.7% |
| Net pay | ~$52,267 | 74.7% |
Net Pay by Salary Level (Ontario, 2026)
| Gross Salary | Federal Tax | Provincial Tax | CPP + EI | Net Pay | Effective Tax Rate |
|---|---|---|---|---|---|
| $40,000 | $3,340 | $1,487 | $3,275 | $31,898 | 20.3% |
| $50,000 | $4,840 | $2,237 | $3,830 | $39,093 | 21.8% |
| $60,000 | $6,340 | $3,037 | $4,440 | $46,183 | 23.0% |
| $70,000 | $7,735 | $3,853 | $4,975 | $53,437 | 23.7% |
| $80,000 | $9,335 | $4,703 | $5,035 | $60,927 | 23.8% |
| $100,000 | $13,035 | $6,603 | $5,131 | $75,231 | 24.8% |
| $120,000 | $17,235 | $8,683 | $5,131 | $88,951 | 25.9% |
| $150,000 | $23,685 | $11,953 | $5,131 | $109,231 | 27.2% |
How to Verify Your Deductions
| Check | How | If Wrong |
|---|---|---|
| Compare to CRA payroll calculator | Use CRA’s online payroll deductions calculator | Ask payroll department |
| Verify income tax (TD1 form) | Ensure correct TD1 filed (claim amounts) | File new TD1 with employer |
| Check CPP hitting max | Should stop mid-year for high earners | Will be refunded on tax return if overpaid |
| Check EI hitting max | Should stop after ~$65,700 insurable earnings | Will be refunded on tax return |
| Match T4 to pay stubs | YTD totals should match T4 boxes | Contact employer before filing |