Payroll Deduction Checker: Every Deduction on Your Pay Stub
Know exactly what is being taken from your pay, why, and whether the amounts look right.
Written and reviewed by Rocco Clayfield, Founder & DirectorLast reviewed
Short answer
Canadian pay stub deductions fall into three categories: statutory deductions required by law (CPP or QPP, EI or QPIP, and income tax), employer-sponsored voluntary deductions you have agreed to (group benefits, pension contributions, group RRSP), and court-ordered or mandatory deductions you cannot decline (wage garnishments, maintenance enforcement). Every deduction must be itemized on your pay stub with a name or code. If a deduction appears that you cannot identify, you have the right to ask your employer for a plain-English explanation.
A Canadian pay stub can carry a surprisingly long list of deductions before arriving at your net pay. Some are mandatory by law, some are authorized by your employment agreement, and some you may have elected voluntarily when you enrolled in benefits. Understanding what each category is — and where it comes from — is the first step to confirming whether each amount looks right.
This page works through the main deduction types in order: statutory deductions first (because they apply to nearly everyone), then employer-sponsored plans, then less common deductions like garnishments or taxable benefit adjustments. For each category, there are notes on how the amount is calculated, what an unexpectedly high or low figure might mean, and what to ask payroll if something looks off.
One important caution: deductions being taken from your pay does not automatically mean an error has occurred. Timing differences, one-time corrections, retroactive adjustments, and benefit plan changes can all produce unusual figures in a given pay period. The goal of reviewing your deductions is not to assume a problem exists, but to understand your pay well enough to ask an informed question when you are uncertain.
What this page helps you check
- Whether CPP or QPP appears and the amount is consistent with your pensionable earnings
- Whether CPP2 or QPP2 appears only if your earnings exceed the first-tier maximum pensionable earnings
- Whether EI (or reduced EI plus QPIP in Quebec) appears at the correct rate on your insurable earnings
- Whether federal and provincial income tax are shown as separate lines
- Whether group benefit premiums match the amounts in your benefits enrolment confirmation
- Whether pension or group RRSP contributions are being taken at the correct rate or dollar amount
- Whether union dues (if applicable) are deducted at the rate set in your collective agreement
- Whether any deduction you do not recognize has a code or description you can look up or ask about
Statutory Deductions: The Non-Negotiables
Statutory deductions are amounts your employer is legally required to withhold and remit to government. In Canada, these are CPP (or QPP in Quebec), EI (and QPIP in Quebec), and federal and provincial income tax. You cannot opt out of these as an employee — though some specific exemptions exist, such as CPP exemptions for employees under 18 or over 70, or EI exemptions for certain excluded employments.
Each statutory deduction has its own calculation basis. CPP is calculated on pensionable earnings up to the Year's Maximum Pensionable Earnings. EI is calculated on insurable earnings up to the Maximum Insurable Earnings. Income tax is withheld using the CRA payroll deductions tables, with the amount depending on your TD1 claims and annualized earnings.
For the second additional CPP (CPP2), deductions apply only to earnings above the standard CPP ceiling and below a higher ceiling called the Year's Additional Maximum Pensionable Earnings (YAMPE). CPP2 was phased in starting in 2024. If your annual earnings exceed the standard CPP maximum, you may see a CPP2 line appear partway through the year. See our CPP2 page for more detail.
Group Benefits and Insurance Premiums
Employer-sponsored group benefit plans typically include health, dental, vision, and life insurance. The employee portion of the premium is deducted from your pay; the employer portion is a cost your employer absorbs and does not appear as a deduction. Your benefit confirmation letter or enrolment package should specify the employee premium amounts by coverage type.
Some benefits are considered taxable benefits by the CRA. Group term life insurance above the exempt threshold and certain employer-paid benefits are added to your income for tax purposes, which may increase your income tax deduction in the period the benefit is applied. A note or adjustment line on your pay stub may reflect this, though not all payroll systems display it transparently.
Pension Plans, Group RRSPs, and Savings Plans
If your employer offers a defined contribution pension plan, a group RRSP, a deferred profit-sharing plan (DPSP), or a combination, employee contributions are deducted from your pay each period. The contribution amount may be a fixed percentage of your earnings, a fixed dollar amount, or a voluntary amount you elected up to a plan maximum.
Contributions to a registered pension plan (RPP) or group RRSP reduce your income for tax purposes — your T4 or an RRSP contribution receipt will capture these for your tax return. If your contributions are deducted but do not appear to be generating the expected tax effect on your withholding, confirm with payroll whether they are being treated as pre-tax deductions in the payroll calculation.
Union Dues, Garnishments, and Other Deductions
If you are a union member, union dues are typically deducted each pay period at a rate set in the collective agreement. You can verify the amount by checking the agreement or asking your union representative. Union dues are generally tax-deductible and appear as a credit on your annual tax return.
Wage garnishments are court-ordered deductions that your employer is legally required to honour. They may arise from unpaid debts, maintenance and support orders, or government debt recovery. A garnishment line should appear on your pay stub with a description. If a garnishment appears that you were not expecting, contact the issuing authority named on the order or seek legal advice. Similarly, family responsibility office or maintenance enforcement deductions work the same way — they are mandatory, court-linked, and must be disclosed on your stub.
When Deduction Amounts Can Legitimately Change
Deduction amounts can change legitimately for many reasons: annual rate adjustments to CPP, EI, or income tax tables effective January 1; annual open enrolment changes to benefit elections; salary increases changing the proportional amounts of income-based deductions; life events such as adding a spouse to a benefit plan; or reaching an annual statutory maximum mid-year.
If a deduction changes and you cannot match it to one of these causes, write down the specific difference and the period in question before contacting payroll. Having a precise question ready — "My group benefit deduction increased by X dollars this period without any enrolment change on my end" — will get you a faster and more specific answer than a general inquiry.
Province & territory note
Quebec works differently
Common red flags worth checking
These do not automatically mean there is an error. They are simply lines worth a closer look, or worth asking payroll to explain.
A statutory deduction line is missing completely
If CPP, EI, or income tax does not appear on your pay stub and you are an eligible employee, this may indicate a payroll classification error, a system configuration issue, or an incorrect exemption being applied. This does not automatically mean underpayment, but it is worth confirming.
CPP2 appears before your earnings could have crossed the first-tier maximum
CPP2 should only begin once your year-to-date pensionable earnings exceed the Year's Maximum Pensionable Earnings. If it appears early in the year for a salary level that would not normally reach that ceiling, the payroll setup may be incorrect.
A benefit deduction is being taken for coverage you did not elect
If a benefit line appears for a plan you opted out of or for a coverage tier different from what you selected, contact HR to confirm your enrolment status. Premiums for unenrolled coverage are not normally recoverable retroactively once the benefit period has passed.
An unrecognized deduction code with no plain-language label
Payroll systems often use internal codes that are not obvious to employees. You are entitled to ask what any code means. A code that neither you nor HR can explain is a legitimate concern worth escalating.
Income tax appears unusually low despite a high-earnings period
Under-withholding of income tax is harder to notice than over-withholding, but it may result in a balance owing at tax time. If your earnings are notably higher than usual (bonus period, additional shifts) but your tax deduction is similar to a normal period, ask payroll how the tax was calculated.
Total deductions exceed what would be expected given your gross pay
If the sum of your deductions is disproportionately large relative to your gross — leaving net pay that seems too low — go through each line individually. A duplicate deduction, an inflated benefit premium, or an unauthorized garnishment can all cause this.
Want this checked on your real pay stub?
Upload your pay stub or payroll document and get a plain-English breakdown with possible questions to ask payroll.
What to ask payroll or HR
Calm, specific questions get clearer answers. You can copy any of these, or build a full message with the Payroll Message Generator.
- “Can you provide a list of every deduction on my pay stub with a plain-English explanation of what each one is and why it applies to me?”
- “My [specific deduction] changed this period — what caused the change and where can I verify the new amount?”
- “I see a deduction code I do not recognize — what is it, and did I authorize it?”
- “My group benefit premiums appear different from the amounts on my benefits enrolment confirmation — can you reconcile these?”
- “I believe I may have reached the CPP or EI annual maximum — can you confirm whether further deductions this year are correct?”
- “My income tax withholding seems lower than I would expect given my earnings level — can you confirm the method being used?”
Frequently asked questions
What are the mandatory deductions on a Canadian pay stub?
For most employed Canadians outside Quebec, the three mandatory statutory deductions are Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal and provincial income tax. Quebec employees contribute to QPP and QPIP rather than standard CPP and EI.
Can my employer deduct money from my pay for any reason?
No. Employment standards legislation in every province limits what an employer can deduct from wages. Statutory deductions (CPP, EI, tax) and deductions you have explicitly authorized in writing are generally permitted. Deductions for employer losses, shortfalls, or equipment damage are restricted or prohibited in most jurisdictions without a court order or explicit employee agreement.
What is a taxable benefit and why does it affect my deductions?
A taxable benefit is something of value your employer provides to you beyond your cash wages that the CRA treats as income. The value of taxable benefits is added to your employment income for the purpose of calculating income tax withholding, which can make your tax deduction higher in the period the benefit is applied. Common examples include group life insurance premiums above the tax-free threshold and employer-paid personal use of a company vehicle.
Why is my CPP deduction different from my coworker's on the same salary?
This is usually explained by different year-to-date totals. If one of you had prior employment earlier in the year or has already reached the CPP annual maximum, the per-period amounts will differ even at the same salary. The CPP rate and calculation basis are the same for all eligible employees.
How do I know if union dues are the right amount?
Check your collective agreement for the dues formula. Union dues are typically set as a percentage of regular earnings or as a flat amount per pay period. Your union local can confirm the current rate if you do not have a copy of the agreement.
What should I do if a wage garnishment appears on my pay stub unexpectedly?
Contact the issuing authority named in the garnishment order. Your employer is legally required to comply with a valid court order, so they cannot simply remove it. If you believe the order was issued in error or has been satisfied, you will need to obtain a court or tribunal document confirming that fact and provide it to both your employer and the issuing authority.
Are all deductions from my pay tax-deductible?
No. Statutory deductions like CPP and EI generate federal tax credits (not deductions) that reduce your tax payable. Union dues and registered pension plan contributions are generally deductible from income. Group benefit premiums are typically not deductible by employees. The tax treatment depends on the specific deduction.
I have two jobs. Will my deductions be doubled?
Each employer deducts CPP, EI, and income tax independently. If your combined earnings from both jobs exceed the annual maximums for CPP and EI, you may over-contribute and can claim a refund through your annual tax return. For income tax, having multiple jobs without coordinating withholding may mean you are withheld at a lower rate than your combined income warrants, potentially leading to a balance owing at filing time. Consider updating your TD1 forms to request additional withholding at one of the jobs.
Official sources for this page
Every figure here is derived from these. Where a number matters to you, read it at the source — PayStub IQ Canada explains the rules, it does not set them.
- Payroll deductions and contributions — Canada Revenue Agency
- CPP contribution rates, maximums and exemptions — Canada Revenue Agency
- EI premium rates and maximums — Canada Revenue Agency
- Guide T4127, Payroll Deductions Formulas — Canada Revenue Agency
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Helpful guidance, not advice
PayStub IQ Canada provides educational payroll explanations based on the information visible in your document. It does not provide legal, tax, accounting, payroll, CRA, Revenu Québec, or employment standards advice. For official decisions or corrections, contact your employer, payroll department, CRA, Revenu Québec, your provincial or territorial employment standards office, or a qualified professional.