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 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.

More on payroll deduction

• Payroll deduction statement FAQs

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