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this video will explain how to calculate the employment insurance Canadian pension plan taxes and net income of a person based on their gross income please note that this is a very simplified model which is loosely based on the Ontario and federal taxes in 2012 so suppose someone had a gross income that's how much they're paid by their employer of 83,000 dollars a year during this tax year the employment insurance charges 1.83 percent to a maximum of 800 $39.97 and a Canadian pension plan contribution of four point nine five percent to a maximum of two thousand three hundred six dollars 70 cents finally and again it's very simplified their income tax we're gonna calculate it as follows between zero and ten thousand dollars they'll pay no tax from ten thousand to forty thousand dollars they'll pay twenty percent from 40,000 to 80 thousand dollars they'll pay thirty one percent and all their money 80 thousand dollars and over they'll pay thirty percent thirty seven percent I should say s

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