New employer not deducting Federal Taxes

[One_Topsy]

Hi Everyone,

I worked for Employer A from Jan 2017 to October 2017. They were deducting

-Federal tax
-EI
-CPP

My new employer from Oct 2017 only deducts

-EI
-CPP

I looked at my payslip and there is no federal tax deduction. The only reason I can think of is that I filled a TD1 form for tax credits claiming the minimum amount.

https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/E/pbg/tf/td1/td1-fill-04-17e.pdf

My total income with the new company for the rest of 2017 will be less than the amount claimed ($11,635).

This is why I believe they are not deducting federal tax.

1. Am I safe to assume the above, and they will start deducting from Jan 2018?

2. When I get my pay, should I keep a part aside for when I file my taxes in 2018 in case i'm owing?

Thanks

 

[Wonderland_1010]

Hi Everyone,

I worked for Employer A from Jan 2017 to October 2017. They were deducting

-Federal tax
-EI
-CPP

My new employer from Oct 2017 only deducts

-EI
-CPP

I looked at my payslip and there is no federal tax deduction. The only reason I can think of is that I filled a TD1 form for tax credits claiming the minimum amount.

https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/E/pbg/tf/td1/td1-fill-04-17e.pdf

My total income with the new company for the rest of 2017 will be less than the amount claimed ($11,635).

This is why I believe they are not deducting federal tax.

1. Am I safe to assume the above, and they will start deducting from Jan 2018?

2. When I get my pay, should I keep a part aside for when I file my taxes in 2018 in case i'm owing?

Thanks

Your income is less than the tax credits for federal and provincial. Therefore income tax is not deducted from your paycheck. EI and CPP is deducted because its mandatory that employers has to deduct EI and CPP.

Unless you work full time or have part time jobs with more than 20 hours a week for the year 2018 then yes income tax will be deducted. You don't have to keep some money in case you owe but its really upto you.

 

[One_Topsy]

Let me explain again.

Let's say Employer B is paying me $40k a year, I've been working for them since Oct 2017

My gross salary for the year is more than the amount claimed, however, the amount they will pay me from Oct-Dec is less than the amount claimed, so they are not deducting taxes.

However, I have been working with another employer (let's say Employer A from jan 2017 to oct 2017) and they also pay $40k a year

They have been deducting taxes. If I was still working with employer A they will still be deducting taxes till dec 2017, this is what worries me.

Is it because I have switched from employer A to employer B in Oct, even though the salary is the same they are not deducting taxes?

When i file my taxes next year, my TOTAL gross income for the year will show up and I have not been paying taxes since Oct 2017? i am still in the same tax bracket for 2017

 

[pie_vancouver]

Ask your employer why they are not deducting taxes, when you file ITR next year, if the income tax is more than the withheld, then you pay tax, if lower then you get a refund, don't worry about the ITR. In my experience, I prefer to pay than get a refund.