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Work Bonus

weather: partially sunny
outside: 17°C
mood: okay

Did I mention that work gave me a bonus? Thank you, Work! =)

I got $3,600.00. Everyone got a base amount, then some got more based on performance. I must've kicked ass. =}

I don't get to touch any of that money though because it went straight into my RRSP. If I had not, it would have been taxed at 50% because they calculated the tax bracket based on the one pay period.


Comments

( 9 comments — Leave a comment )
badkarma_05
Sep. 11th, 2002 12:26 pm (UTC)
A mere $3,600.00!? Well, my job gave me a pink slip and a kick in the ass out the door. :)
piyomomo
Sep. 11th, 2002 12:41 pm (UTC)
only $3600? i can easily get that after working for 2.5 months. i also get $40 disability insurance tax deducted from each pay. beat that.
bride
Sep. 11th, 2002 12:44 pm (UTC)
Re:
$160 "Miscellaneous Taxable Benefits" per month.

I win. Hands down. =)
piyomomo
Sep. 11th, 2002 01:05 pm (UTC)
Re:
no no.. you don't want to know the other tax deductions i have. i don't want to think about it. a/p is very good to me though, they managed to break it up for me instead of calling is miscellaneous. so nice of them. *eyes roll up*
badkarma_05
Sep. 11th, 2002 02:45 pm (UTC)
Score! Hey want to trade?
mayna
Sep. 11th, 2002 12:38 pm (UTC)
Yeah, but you'd get the money back when you do your 2002 taxes. *shrug*
magicwoman
Sep. 11th, 2002 03:53 pm (UTC)
Way to go!
Always good to know you've done an outstanding job!

Tonight our company's board of directors are meeting to decide on how much of raise everyone will get this year. . . cross your fingers!

Susan
bride
Sep. 11th, 2002 03:55 pm (UTC)
Re: Way to go!
*cross fingers*
*cross toes*
*cross arms*
*cross legs*
*cross eyes*
*braid hair*

I hope you get a big one! You so deserve it =)
nightshift
Sep. 11th, 2002 08:15 pm (UTC)
Way to go!! =D
Hey, congrats! $3600 is quite a hefty bonus!! Impressive! I think I should also congratulate you for maintaining fiscal discipline.

It's a very prudent and wise choice to roll the entire $3600 bonus into your RRSP. It allows for:
1) tax deferred savings
2) reduction of current taxable income
3) sheltering of investment income

Many people choose to spend any unexpected supplemental income, such as performance bonuses or tax money returned by the Canada Customs and Revenue Agency, formerly Revenue Canada, on a luxury item like a vacation. Now, from a purely fiscally prudent perspective, I wouldn't suggest it unless you no longer had any contribution room remaining in your RRSP. But then again, everyone needs to get away for a while too.

So how much is your contribution room? Your contribution room is 18% of your annual earned income (of the previous year) up to a maximum of $13,500. Please also note that you can carry forward your unused contribution room from previous years (ie. after and including 1991) and your actual deductions indefinitely. So what I am actually saying is that a person can deduct more than the yearly cap (presently $13,500) only if he/she is using a carry forward of previous RRSP contribution room.

This 18% of annual income limit will increase to $14,500 in the year 2004 and $15,500 in 2005. After 2005, the limit will be indexed.

A warning to ya. Do not overcontribute into your RRSP. In the event a taxpayer has contributed in excess of their limit, CCRA levies a 1% monthly penalty until the overcontribution is corrected.

Do you have a spousal RRSP? There are tax saving opportunities obtained through income splitting if there is a significant wage differential between you and your spouse.
( 9 comments — Leave a comment )

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