| A | B |
|---|
| CPP | A mandatory federal deduction of money which is set aside for your retirement. |
| EI | Money set aside to pay you a benefit if you ever lose your job or take maternity leave. |
| Income Tax | A federal and provincial deduction. This money is used by the government to pay for things like health care and education. |
| TD1 | A form completed by anyone receiving employment income. The claim code on this form tells the government how much tax to withhold from your paycheque. |
| T4 Slip | A form filled out by the employee to calculate income tax. |
| taxable income | The part of the gross earnings on which income tax must be paid. |
| tax exempt | A part of earned income on which the individual does not pay tax. |
| RPP | A pension plan other than the one run by the federal government. Certain professions may require that you participate in this plan. |
| RRSP | An individual retirement savings plan. Tax is not paid on this money or its interest until you withdraw it from the plan. |
| union dues | A fee automatically deducted from your paycheque if belonging to a union is a requirement of employment. |
| net earnings | Take-home pay |
| payroll deduction | Money taken out of your paycheque before you get it. |
