Richard
Richius
YaBB God
Posts: 4,369
Political Matrix E: 8.40, S: 2.80
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« on: January 08, 2010, 11:34:01 PM » |
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« edited: January 08, 2010, 11:36:51 PM by Richard »
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In the US:
- social security at 6.2% up to wages of about $102,800 - medicare at 1.45%, no limit
In Canada:
- Canadian Pension Plan (social security) at 4.95% up to wages of about $45,000 - employment insurance at 1.73% up to wages of about $43,000
A person getting paid $60,000 a year in New York state will receive a smaller pay cheque than a person earning the same amount in most Canadian provinces, except Quebec.
Although the Canada/Ontario tax rate may look higher, the payroll taxes in the US are very high compared to Canada. Anyone earning more than about $45,000 in Canada stops paying all payroll taxes.
On $102,000, that extra $57,000 that is taxed (in the US) but not in Canada at the payroll level means an additional 7.65% in income taxes, a considerable amount considering your average tax rate may only be around 25 to 30%.
In 2009, Canadians will not pay more than $2,118.60 (CPP) + $731.60 (EI) = 2,850.20 in payroll taxes, no matter how much you make. (If you have multiple jobs, your EI and CPP deducted gets refunded.)
Thoughts?
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