I think I made a boo-boo.
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  1. #1
    Registered User MomToTwoBoys's Avatar
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    Unhappy I think I made a boo-boo.

    Hey all

    It has been an iffy few months here, still trying to get used to DH's new job and the budget that follows.

    Well, we had a permanent change in his paycheck. He was hired FT with the company he was placed with through a temp agency, and last week was his first paycheck. He went FT on August 6th and the 16th was his first paycheck. He's being paid $19.25 per hour and with OT almost every single night. I didn't see his first paycheck stub from the company, but he showed me the one from this past Thursday.

    I just about fell to the floor.

    40 hours regular time and 5 hours OT = $931.



    Since he's claiming the disability tax credit, his taxable income is vastly different. It's really hard to explain, but I am sure that somewhere down the line, I may have filled out the form incorrectly. Here is his check:

    40 hours regular time @ 19.25 = 770.00
    5 hours OT (1.5) @ 28.875 = 144.83
    Total earnings (which I am pretty sure this is a shift differential since he works nights) = 93.75

    Total (less taxable benefits) = 1008.13

    EI = 18.45
    CPP = 46.75
    Union Dues = 12.00

    Net pay = 931.11

    Now, the disability tax credit reduces taxable income paid by a considerable amount. This is why he has no federal tax coming out of his paycheck. In Canada, you are taxed EI and CPP (employer contributes 1.4 times employee's EI and matches the CPP for their deductions paid out - I learned that in school ) and Federal Tax. The claim code used to determine your taxes paid is based on line 12 of the Personal Tax Credits Return that new employees fill out (something else I learned in school) and I believe I miscalculated the disability amount that is added in with the other amounts to determine the claim code.

    So here I am, paystub in hand, wondering what I should do. Should I revisit the PTCR form and re-fill it out, then show DH if I did it correct or not or should I just wait until tax time and see what happens?

    But the bright side in all of this is that financially, the only debt we have besides the mortgage now is the credit card and that is being paid off every week. A slight dark side is that this increase in pay may now alter my school benefits, but I have money in savings to cover that if that happens. I am also expecting another check from Canada Revenue for backpay for DS14's child disability benefit for seven or eight years' worth of benefits. We did receive $13.1k in adjusted income tax returns for DH and another $9.6k for the current tax year and two years prior in benefits.

    But back to the original:

    Should I contact CRA and see if it was filled out incorrectly or should I just wait?

  2. #2
    Registered User Nadders11's Avatar
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    I would call cra and see what to do. It's easier to fix a mistake now, then have to deal with it at tax time.

  3. #3
    Registered User savvy_sniper's Avatar
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    DEFINITELY contact CRA NOW! You don't want a big surprise at tax time.

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  5. #4
    Registered User my4littlebuffaloes's Avatar
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    I am not in Canada, but what if you called the HR department at your dh's work to figure out your mistake. They should be able to help you, but I would not just sit on it, you never want to short change the government, even if it is an honest mistake.

  6. #5
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    That was very confusing to this american. But from past experience,fix it fast. Because it is easy to make a mistake but will take 4x as long to untangle it esp. when dealing w/ any kind of govt.

  7. #6
    Registered User Spirit Deer's Avatar
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    I'd contact his job first. Right away. It might be easier to untangle it from their end.

  8. #7
    Registered User Libby's Avatar
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    Nip it in the bud while you're still trying to adjust your budget etc. Fixing it after being asked to will be a bigger headache b/c you're going to have to spend time backtracking and looking for stuff etc.

    If you can - keep a mini EF going in case something drastic changes while they're correcting your claim so you don't fall short on other things.

  9. #8
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    In USA even an honest mistake can cost you big time in interest and penalties when dealing with the IRS. I'd assume your taxing authorities have a similar outlook so I'd correct it asap.

  10. #9
    Registered User MomToTwoBoys's Avatar
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    The odd thing is that I went back and checked the worksheet that came with the TD1 form and I can't find a calculation spot where it asks for the amount to be entered. I checked both the Federal and the Alberta version, and neither of them have it.

    But I will call CRA and find out if it was entered incorrectly. Thanks everyone.

  11. #10
    Registered User Sophiasmama's Avatar
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    They won't be rude about...oh my I have messed up payroll many times...but if you catch it and call them...no issues. Good luck!

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