Create Paystubs Canada: Understanding Types of Taxes

Create Paystubs CanadaThere are many deductions which are highlighted on the paystubs and an employee can create paystubs online with a mac or any other device depending on the convenience level. However, the most important thing is paystubs should be issued properly to the employees. It should include the paystub components correctly. Especially when trying to Create Paystubs Canada.

When it comes to creating the right paystubs, you need to understand the various tax deductions that you need to make. The online paystub generators will by itself ensure that you take in various deductions, but the deductions that you really need to make will depend on a lot of factors including your local government policies.

All you need to create paystubs Canada

A paystub has many components like net pay, gross pay, SSN deductions and Medicare where some of the other deductions on the paystubs are listed below for better understanding.

Additional items on the paycheck stub

To create paystubs, the employer can use online generator and highlight the additional items if applicable. These items are not required, but it can help in managing the money and relevant to the status of employment of an employee.

First is the insurance deduction which is monthly payment an employee pays for life insurance, health insurance, etc.

Second are the retirement plan contributions.

Third is the leave time which includes vacation hours or sick hours and these hours are calculated by the employer.

Then come the childcare assistance and this amount appears as a pre tax benefit on every paycheck of an employee. Lastly, all the important notices which an employer wants to communicate to his employees like salary increase, important notifications about tax filings; among others.

Different Types of Taxes on a Paystub

There are usually three types of taxes which appear on the paystubs and to create paystub, the employer uses online resources so all the taxes are rightly defined on the paystub.


First is the Federal Tax amount which one owes to the Federal Government and from every paycheck, this amount is deducted incrementally and varies on the amount of exemptions an employee chooses to claim.


Secondly, it is the State Tax Amount and as per the residing state of an employee, the tax is to be paid and deducted by employer. It covers the amount of tax that an employee owes to the state when the tax return is filed.


Thirdly, it is the Local tax amount which is a rare type of tax and applies only to some employees of special districts, counties or states.

The employee may live in one city of one state and work in another, and then he or she may need to pay the tax of the state they live in as well as of the city they are working in. If you are looking to create paystubs Canada, don’t forget about the taxes.

Hopefully you now know how to Create Paystubs Canada. If you have any questions or comments, please feel free to leave them in the comment section below.


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Published In: Create PayStub