Employment Income

Annual Income: For non-retired clients, enter the ‘earned income’ that they plan to report on their tax return for the current taxation year. Do not include investment income such as interest, dividends or capital gains earned on investments. This information is used to determine the pre-retirement tax rate of the client(s).

Number Pay Periods: Enter the number of pay periods per year for the clients. For clients that are paid bi-weekly they would have 26 pay periods whereas clients that are paid semi-monthly have 24 pay periods per year.

Take Home / Period: Enter the take home pay (i.e. after tax amount) of the clients per pay period. This amount multiplied by the number of pay periods should not exceed the annual income entered. If Take Home / Period is entered as zero, the program will estimate withholding taxes based on the clients’ average tax rate for the year.

Self Employed: Select if the clients are self-employed for tax purposes. Selecting Yes here indicates that the person is responsible for both the employee and employer portions of CPP payments.

Index (% Inflation): Employment income is indexed as a percent of inflation. Enter the percentage that will be applied to the inflation rate for indexing the employment income. For example, if inflation is entered at 3% and you enter 50% in this field, the software will assume an increase of 1.5% per year on the employment income.

*Number Pay Periods, Take Home / Period and Self Employed are displayed only when the Pre-Retirement Cash Flow field on the Assumptions tab in Your Account is set to On.

Occupation: Enter the current primary occupation. This information will not have an impact on the analysis.

Employer: Enter the current primary employer. This information will not have an impact on the analysis.

*In some cases, it is possible that clients could have periodic or one-time income (pre-retirement). In this situation, it is recommended you enter the extra income through the Employment Income Drill-Down .