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BC Tax Info

Calculation of British Columbia Tax

The following explanation simplifies the calculation of the tax by displaying only the final result of the Net Income.

For an employee

Net Income = Taxable Income - Federal Tax - British Columbia Tax - CPP - EI

For self-employed workers

The same calculation must be made for the self-employed worker. Individuals are resident in the CPP. The self-employed must pay more than an employee.

Formula for Calculating Net Salary In BC

The annual net income is calculated by subtracting the amounts related to the tax (Canada Tax and British Columbia Tax), the Canadian Pension Plan, the Employment Insurance.

Gross annual income - Taxes - CPP - EI = Net annual salary

Net annual salary / Weeks of work per year = Net weekly income

Net weekly income / Hours of work per week = Net hourly wage

CPP calculation

For and employee or employer

CPP contribution = (The smallest number between: Gross revenue and: Year's maximum pensionable earnings YMPE in 2021 - Basic exemption) x (Employee or Employer rate / 100)

Frequency Or Periods Of Payment

In British Columbia, the frequency or pay cycle is usually every 2 weeks. However, it is quite possible that you need to know the other pay periods that may be following them (based on an entire year of 52 weeks):

Annual (year-round, only once a year) Monthly (a month, 12 periods per year) Semimonthly (2 x per month, 24 periods per year) Biweekly (every 2 weeks, 26 periods a year) weekly (once per week, 52 periods a year) Schedule (per hour, 52 weeks x number of hours per week)