Trevor Dailey's Weblog

On October 1, 2016, the Ontario government once again forced all employers in the province to pay employees an annually increasing minimum wage. Each year, the minimum wage in the Province of Ontario rises. The current minimum wage in Ontario is $11.40 per hour. I was recently hired for a new job. I work for minimum wage. For my first paycheque, my gross pay was $422.94. I received $400.72 for 36.50 hours of work. If one does the math, one will find $11.40 multiplied by 36.50 equals $416.10.

The Ontario government also forces all employers to pay their employees vacation (hoiliday) pay that, for my paycheque, is $6.84. That makes $422.94, but the Federal government stole $14.27 for CPP (Canada Pension Plan) and $7.95 for EI (Employment Insurance) from my paycheque leaving me with $400.72. My employer is also forced to pay the government payroll taxes for giving me a job.

The way this government scheme works is, the Ontario government forces an employer to pay a minimum wage to an employee, and then the Federal government has more money to steal from the employee’s paycheque, and to steal from the employer in payroll taxes. The Federal government later transfers some of this money back to Ontario in what are called "transfer payments" to the provinces. In the end, I actually worked for $10.97 per hour, and not the required by law $11.40 Ontario minimum wage!

My second paycheque, I get paid bi-weekly, is $803.68. That is from a gross pay of $963.30. My hourly pay is still $11.40 per hour, the Ontario minimum wage, and I worked a total of 84.50 hours this pay period. I received no vacation pay, but since I earned more, the Federal government stole more from me. CPP tax is $41.02, and EI tax is $18.11. Since I earned more money, there is a “Federal Tax” included on my second paycheque that equals $100.49. The Federal government is stealing more money from my paycheque because I worked more hours, and I earned more money. If one divides $803.68 by 84.50, one will find my hourly rate of pay is lowered to $9.51 per hour!

What an employee is paid for a wage should be between the employer and the employee. The employee should be paid what is agreed to. If the employee is not paid as per the agreement, only then should the government become involved to make sure the agreement is followed. The employee should keep all money the employee earns, meaning no deductions, or income tax. There should be no payroll taxes for the employer to pay. The government should keep it’s hands off the paycheques of those who do the work to earn their pay, and its nose out of an employer's business.

(c) Trevor Dailey