Substantial Retroactive Pay

[maniac779]

A pay adjustment was just completed for me which entitled me to just shy $1600 more per month and was retroactive to last April. It works out to about $18000 or so before taxes.

However, I just took a peak at my pay entitlement and although its a nice chunk of change showing for next month, it still is shy of what it should be by my math.

So my question is, is there a limit to the amount of money the queen will give you for any given month?

 

[MJP]

No not really.  I had a guy in my Bn get almost 3+ years of retroactive pay all in one fell swoop and it was quite a bit more than what you are saying you are getting.  Talk to your OR, they will have the definitive answer hopefully.

 

[NL_engineer]

A pay adjustment was just completed for me which entitled me to just shy $1600 more per month and was retroactive to last April. It works out to about $18000 or so before taxes.

However, I just took a peak at my pay entitlement and although its a nice chunk of change showing for next month, it still is shy of what it should be by my math.

So my question is, is there a limit to the amount of money the queen will give you for any given month?

As said, talk to your OR

Also you should get an accountant to do your takes this year, other wise Revenue Canada will love you  :.

 

[George Wallace]

Did you calculate close to 50% tax?

 

[armyvern]

And the pension contributions / unemployment that will also be deducted from those monies???

 

[geo]

The unfortunate problem with those pesky computers is that unless the data is entered properly, it will be all be taken as current earnings... IE: you'll be getting that same amount of $$$ every pay.... which, of course, you won`t BUT, because of how it was entered, you'll be paying MAX TAX on that pay.

18000 + regular pay 2500 (?) 20500$ @ 50% tax...... 10250$ to you & 10250$ to the crown

If they had entered the 18000$ as a retro pay adjustment (like a bonus) they would
1.  divvy up your windfall over the 24 pay periods of the year (750$)
2.  figure out how much the 750$ would cost you in additional taxes (262.50$ @ 35%)
3.  multiply the 262.50 by the 24 pay periods (6300$)
4.  add the 6300$ in taxes to your regular tax amount (35% of 2500 = 875)

so you pay 10250$ if everything is all bunched together
OR you pay 7175$ if they spread out the calculation
but we are talking about 3000$ in my example......

 

[orange.paint]

Had a friend that later proved he should have joined as a Cpl.10 years later,still a Cpl and bitter.
He got a lot of money.

 

[geo]

Had a friend that later proved he should have joined as a Cpl.10 years later,still a Cpl and bitter.
He got a lot of money.

and paid a lot of taxes I am certain. 

 

[maniac779]

I calculated around 50%, and the amount I am getting is less than that.

It could be taxes, but less than 50% net seems a tad harsh. But that could be the case... :-\

As for unemployment/pension, the numbers seemed relatively normal, so I am tempted to say no...

 

[geo]

maniac...
when you get a huge chunk of change, they will also jack up your CPP and UI payments.  By the sound of it, you will have finished paying off those contributions before all of us get half way....

 

[orange.paint]

and paid a lot of taxes I am certain. 

As you guys said close to 50 %.

 

[x-zipperhead]

It's a 50+% kick in the ass, that's for sure.  I had a $5000 dollar retro lump sum a few years ago and I feel your pain.  It was just as geo described; because it is done automatically, they deducted taxes as though I made that amount ($5000 + my regular months salary) every month.

You should get back a fair amount of what was deducted  when you file your income tax return next year.  It all comes out in the wash at the end.

 

[geo]

.... yeah... some 18 months later....

 

[CdnArtyWife]

.... yeah... some 18 months later....

Just think of it as a no interest paying savings account.  >

 

[x-zipperhead]

.... yeah... some 18 months later....

Just think of it as a no interest paying savings account.  >

Too true....too true.....