(Montreal) According to a new study by Payments Canada, neglect and misunderstanding have left many workers ill-equipped to evaluate their payslip.
Updated on August 9
Carelessness in personal finances
According to Payments Canada, each year, approximately $971 billion is paid to Canadians in wages or benefits.
However, according to a Payments Canada study, more than the majority of the population say they pay little attention to the income and deductions that appear on their payslip. 46% of Canadians believe they care more about the environment than their pay stub. It’s the same story on social media.
“It’s absurd for people to work 35 or 50 hours every two weeks without taking 10 minutes to check their paycheck,” laments David-Alexandre Brassard, chief economist of Chartered Professional Accountants of Canada.
Unutilized payslips
According to a Payments Canada study, less than 34% of the population assesses their payslip details only at the time of income statement. That’s a “staggering” number, according to Christina Logue, director of finance at Payments Canada.
That means a third of the population worries about their salary only once a year.
Christina Logue, Director of Finance at Payments Canada
Furthermore, 35% of the population find it “intimidating” to look at their ad details. The study found that almost a quarter of Canadians are embarrassed to ask their employer for salary details.
A complex tax system
A Payrolls Canada study found an “alarming gap” in Canadians’ understanding of pay slips. The organization claims that 35% of the population overlooks some element of their pay stub and 38% confirm that they lack the ability to spot the error.
According to David-Alexandre Brassard, the tax system should be improved to make it easier for employees. In addition to the two levels of government taxes, there are source deductions from employers and secondary income: “In the protection of the public, it is very complicated,” the economist emphasized.
The “significant” numbers of the pay stub
The majority of payrolls are made by direct deposit. David-Alexander Brassard explains that you have to be disciplined and approach the readings. Tax errors are rare, he said. However, revising the amounts of gross income and employer deductions is essential to avoid compensation errors, the economist adds.
According to a Payments Canada study, 45% of the population receives their paycheck without completing a financial management plan. Keeping up to date with their payslips can help Canadians make better personal financial decisions, says David-Alexandre Brassard.
For example, Canadians still feel that if they earn more money, they must pay more taxes on their total income. “This is a myth that we have yet to debunk,” says the specialist.
Technological innovations
Modernization of payment systems, according to Cristina Lag, provides many efficient platforms that facilitate understanding and facilitate access to information. Technological innovations also represent an opportunity for employers to help their employees better understand their payslip details and their financial interests, she adds.
According to David-Alexandre Brassard, the digital transformation also facilitates personal financial education through online courses, newsletters and access. According to him, the school curriculum for the youth will ensure a better understanding of the tax system in the future.
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