Gross income
GeneralYour total earnings before any deductions like income tax, CPP, or EI premiums are taken off. The number on your job offer is usually gross income; your actual take-home pay (net income) will be lower.
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Net income
The amount of money you actually take home after all deductions. This is the number that matters for budgeting because it reflects what you actually have to work with each pay period.
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Deduction
An amount subtracted from your income before tax is calculated, reducing the total tax you owe. Common deductions include RRSP contributions, child care expenses, and union dues.
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T4 slip
A form your employer gives you each year showing your total earnings and deductions (income tax, CPP, EI). You need your T4 to file your tax return. If you worked for multiple employers, you will receive a T4 from each one.