Payroll Deduction Makes Purchasing SaskWorks Venture Fund Shares Easy
A bi-weekly SaskWorks Venture Fund investment of $100 could cost you less than $25*
It's true. When you join SaskWorks Venture Fund's Payroll Investment Plan, your bi-weekly contribution of $100 could cost you less than $25 each pay period. And in one year you would invest $2,600 in your RRSP.*
Here's how SaskWorks Venture Fund makes it work.
If you are a Saskatchewan resident and are eligible for RRSP contributions, you can take advantage of SaskWorks Venture Fund's Payroll Investment Plan.
When you invest in SaskWorks Venture Fund, you are eligible for a 35% combined federal and provincial tax credit, plus you are entitled to all the benefits of a regular RRSP tax saving. Usually you would receive all these savings when you file your taxes. But with SaskWorks Venture Fund's Payroll Investment Plan, you receive these savings each payday.
Here's a step-by-step analysis based on two sample incomes: $38,000 and $76,000.
- Your employer forwards your $100 bi-weekly investment directly to SaskWorks Venture Fund.**
- At the same time, your RRSP deduction and SaskWorks Venture Fund's 35% tax credit (e.g., $35 per $100 investment) are applied directly to your earnings, in the form of lower tax deductions.
Actual Net Cost of $100 Bi-Weekly Payroll Deduction
| Sample income levels | $38,000*** | $76,000*** |
|---|---|---|
| Sample Investment | $100/pay period | $100/pay period |
| RRSP tax savings (Note 1) | $33/pay period | $39/pay period |
| Federal and provincial tax credit (Note 2) | $35 | $35 |
| Total savings | $68 | $74 |
| Your after-tax cost of $100 investment | $32 | $26 |
| Net cost of $2,600 investment after tax credits and RRSP deduction | $832 | $676 |
| * | Based on a 35% tax credit and approximate tax savings with an RRSP contribution for a person in the highest marginal tax bracket (income $127,021 and higher using the 2010 taxable income tax tables.). |
| ** | The example of $100 per month is issued for simplification of calculations. Amounts withdrawn from an RRSP are taxable at the time of withdrawal. Investors may invest from $500 to $5,000 per year for tax credits. |
| *** | Tax savings will vary by taxable income. Consult your tax advisor. |
| Note 1 | Estimated tax reduction from a contribution to an RRSP for individuals with taxable income range as shown. Amounts withdrawn from an RRSP are taxable at the time of withdrawal. |
| Note 2 | Tax credits equal to 35% of the amount of your investment are available whether or not you hold your investment in an RRSP. |