(Montreal) According to a new study by Payments Canada, many workers say they are ill-equipped to assess their payroll because of recklessness and misunderstandings.
Updated yesterday at 11:16pm.
Carelessness of personal finances
According to Payments Canada, nearly $971 billion is paid to Canadians in wages or benefits each year.
However, according to the Payments Canada study, more than the majority of the population say they pay little attention to income and deductions that appear on their payslip. About 46% of Canadians believe they pay more attention to the weather than their paycheck. The same story with social media.
“It’s absurd that people work 35 or even 50 hours without taking 10 minutes every two weeks to look at their paycheck,” laments David-Alexandre Brassard, chief economist at Chartered Professional Accountants of Canada.
According to the Payments Canada study, as many as 34% of the population evaluate the information on their payslip at the time of filing an income statement. It’s a “surprising” number in the eyes of Kristina Logue, Finance Director at Payments Canada.
This means that a third of the population only worries about their wages once a year.
Kristina Logue, Finance Director at Payments Canada
In addition, 35% of the population find it “intimidating” to examine the details of their statement. According to the study, nearly a quarter of Canadians feel embarrassed asking their employer for salary details.
A complex control system
According to the Payments Canada study, there is an “alarming gap” in Canadians’ understanding of payroll. The organization claims that 35% of the population confirm they ignore certain aspects of their payroll and that 38% claim not to be able to track an error.
According to David-Alexandre Brassard, the tax system needs to be improved to make it easier for workers. In addition to the two levels of state taxation, there are also deductions from employers and ancillary income: “To defend the people, this is quite complex,” emphasizes the economist.
The “important” payslip numbers
Most payslips are paid directly. The fact remains that you have to stay disciplined and consult the readings, explains David-Alexandre Brassard. Tax errors are rare, he said. However, the economist adds that it is essential to revise the level of gross income and employer deductions in order to avoid errors in compensation.
According to the Payments Canada study, 45% of the population receives their salary without completing a financial management plan. Staying current with their payslips enables Canadians to make better personal financial decisions, says David-Alexandre Brassard.
For example, Canadians still think that if they make more money, they will inevitably have to pay more taxes on their total income. “That’s a myth that we still have to deconstruct,” says the specialist.
According to Kristina Logue, the modernization of payment systems offers a variety of efficient platforms that make it easier to understand and access information. Technological innovations also present an opportunity for employers to help their employees better understand the details of their payroll and their financial benefits, she adds.
According to David-Alexandre Brassard, the digital transition is also facilitating personal finance education through online courses, newsletters and accessibility. According to him, a school curriculum for young people would provide a better understanding of the tax system in the future.