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 paycheque! Take a look at this example:
| Salary $48,000/year |
Without Payroll Deductions |
With Payroll Deductions |
| 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. E-mail or call us today at (416) 863-RRSP or 1-800-387-9273 to set up your automatic payroll deduction.
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T. 416.863.RRSP (7777)
1.800.387.9273
F. 416.863.7479
E. carl.spiess@scotiawealth.com
allan.mcglade@scotiawealth.com
ScotiaMcLeod is a division of Scotia Capital Inc., member of CIPF.
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