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Advantages of Payroll Deduction |
Wondering what's so great about payroll deduction? The answer is
immediate tax savings!
Why wait for tax season to get your refund? With payroll deduction for your
RRSP, you get an immediate "at source" tax rebate. That's right, you
get the tax refund with each pay cheque! Take a look at this example:
| Semi Monthly Pay |
$2,000 |
$2,000 |
| RSP Payroll Deduction |
- |
(200) |
| Taxes Payable |
(413) |
(353) |
| Net Pay |
$1,588 |
$1,447 |
| RSP Contribution |
- |
200 |
| Increase in Net Worth = $59 |
$1,588 |
$1,647 |
| Effective Tax Rate |
20.6% |
17.6% |
By taking advantage of payroll deduction, you increase your net
worth by $59 , lower your effective tax rate and save $200 for
retirement - all for a cost of only $141!
In addition, by using payroll deduction, you also gain the advantages of
dollar cost averaging.
Most funds from ScotiaMcLeod are available for as little as $50 in PAC &
Payroll plans. Any fund
with a 6 or 7 digit PAC number is available for payroll deduction.
Talk to your HR representative today about contributing to your ScotiaMcLeod
Group Plan through Payroll Deduction.
More on payroll deduction
The information contained on this website is for use by persons resident in Canada only.
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