FYI 1/12/2016

FYI… for those that have asked me regarding last pay period about what year it should be taxed in. email to HR

Hi Jane, the pay we just received with a start date of Dec 18 2015 ending Dec31 2015 is showing in the wrong calendar year. 
If you look at the pay stub it shows this pay period the start of the new year. None of these dates that where worked are in 2016. Why would this not be included in last 2015 years total income.

 

Jane’s answer

 

Payroll just got back to me and advised that as it is paid in the new year –it counts as 2016 earnings and is reported on the T4 in the year in which it is paid and not worked in compliance with CRA.

 

Fyi

Jane
Internet answer lol…

 

The Question: Are end-of-year paychecks taxable in the year of the work or the year of the paycheck?
The rule is: The paycheck is considered as taxable income in the year the paycheck is ISSUED (dated), even if the work was done and the pay was earned in a different year.
I hope this answer the question why we started a new year to date pay stub on last years hours.