OT: Living In Edmonton

[ripit]

Just a word of caution regarding the white collar work available in Edmonton. There have been a tonne of people move to Edmonton...often because one person is here for a lucrative blue collar job (men for the most part). Their wive's of course tag along and typically they have admin type jobs. Well now what you have is still a shortage of blue collar types, but a massive oversupply of alot of other things.

I'm in a hiring position and when I put ad up for financial analyst position I get upwards of 100 responses. I've been job hunting for a senior financial position (I have one now, but looking to move on) and hiring person on a recent application replied saying thanks for the resume, but we received over 100 highly qualified responses and you are not one of the ones chosen for an interview. Have a friend laid off by gov't (marketing position). Took her six months to find another marketing job at 30K less than before. I know in the position I am in, the salaries have essentially stagnated since about the year 2000 due to oversupply. It's not the land of riches if you are an office worker. Way too many people graduating universities today and not enough getting their journeymen tickets.

 

[Fixed to Ruin]

Just a word of caution regarding the white collar work available in Edmonton. There have been a tonne of people move to Edmonton...often because one person is here for a lucrative blue collar job (men for the most part). Their wive's of course tag along and typically they have admin type jobs. Well now what you have is still a shortage of blue collar types, but a massive oversupply of alot of other things.

I'm in a hiring position and when I put ad up for financial analyst position I get upwards of 100 responses. I've been job hunting for a senior financial position (I have one now, but looking to move on) and hiring person on a recent application replied saying thanks for the resume, but we received over 100 highly qualified responses and you are not one of the ones chosen for an interview. Have a friend laid off by gov't (marketing position). Took her six months to find another marketing job at 30K less than before. I know in the position I am in, the salaries have essentially stagnated since about the year 2000 due to oversupply. It's not the land of riches if you are an office worker. Way too many people graduating universities today and not enough getting their journeymen tickets.

This is why you're better off living in one of the smaller cities then directly moving to Edmonton/Calgary. Everyone wants to live there so you are competing with hundreds of applicants.

If you go outside the big centers you will be able to get your foot in the door faster and gain that necessary work experience to either transfer or switch to a job in Edmonton or Calgary.

 

[Raab]

That's the most absurd thing I've heard in a long time. Unless your finger slipped when you were typing 50k

50k your just getting by after taxes IMO, 75-80K though and you can live a fairly comfortable life. Just gotta watch your housing costs. You don't need a 432,000 dollar home for your first home.

 

[Magnum23]

For many recent grads don't underestimate the tax effect. I have 40k job and aside from rent,gas,groceries, taxes pretty much take away another $600 of your liquid cash.

 

[Lacaar]

Just a word of caution regarding the white collar work available in Edmonton. There have been a tonne of people move to Edmonton...often because one person is here for a lucrative blue collar job (men for the most part). Their wive's of course tag along and typically they have admin type jobs. Well now what you have is still a shortage of blue collar types, but a massive oversupply of alot of other things.

I'm in a hiring position and when I put ad up for financial analyst position I get upwards of 100 responses. I've been job hunting for a senior financial position (I have one now, but looking to move on) and hiring person on a recent application replied saying thanks for the resume, but we received over 100 highly qualified responses and you are not one of the ones chosen for an interview. Have a friend laid off by gov't (marketing position). Took her six months to find another marketing job at 30K less than before. I know in the position I am in, the salaries have essentially stagnated since about the year 2000 due to oversupply. It's not the land of riches if you are an office worker. Way too many people graduating universities today and not enough getting their journeymen tickets.

It's honestly a value driven market here....
And I know you don't want to here it but ya don't give much value.
Perhaps try Toronto, New York?

 

[Speed220DChalavan]

For many recent grads don't underestimate the tax effect. I have 40k job and aside from rent,gas,groceries, taxes pretty much take away another $600 of your liquid cash.

As a recent graduate:

-Approximately the first $11,000 would be tax exempt (basic personal amount)
-You would likely have education/tuition and textbook credits that were carried forward and can be used to reduce taxes owing.
- Possible student loan interest tax credits - see above
- Public transit credits, moving expense

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/stdnts/ddctns-eng.html

A basic personal tax calculator would indicate you should be expected to pay ~$6,500 without consideration of the above credits/deductions. Less after the fact.

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2013-Personal-Tax

(side note: BC and Ontario are more favourable than Alberta from an after-tax income perspect for income below $115,000. Alberta's flat tax rate of 10% exemplifies that rich get richer...while the poor get...children.)

Back to the original point - you shouldn't be paying too much in taxes as a recent grad. Keep your head up - we all started at low salary levels when starting out as recent grads. The 30% annual raises after doing your entry level contract (usually 2-3 years) are not out of realm of possibility.

Side note: I'm an accountant and if anyone reading this who needs a Corporate tax accountant, send me a private message. Always looking to help fulfill the demand in this surging Edmonton community.

 

[Magnum23]

Hey Bewafa,

Thx for the info very good to know. I was wondering if its more beneficial to pay off my student loan with a lump sum or continue paying monthly payments and use the interest as tax credit.

As a recent graduate:

-Approximately the first $11,000 would be tax exempt (basic personal amount)
-You would likely have education/tuition and textbook credits that were carried forward and can be used to reduce taxes owing.
- Possible student loan interest tax credits - see above
- Public transit credits, moving expense

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/stdnts/ddctns-eng.html

A basic personal tax calculator would indicate you should be expected to pay ~$6,500 without consideration of the above credits/deductions. Less after the fact.

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2013-Personal-Tax

(side note: BC and Ontario are more favourable than Alberta from an after-tax income perspect for income below $115,000. Alberta's flat tax rate of 10% exemplifies that rich get richer...while the poor get...children.)

Back to the original point - you shouldn't be paying too much in taxes as a recent grad. Keep your head up - we all started at low salary levels when starting out as recent grads. The 30% annual raises after doing your entry level contract (usually 2-3 years) are not out of realm of possibility.

Side note: I'm an accountant and if anyone reading this who needs a Corporate tax accountant, send me a private message. Always looking to help fulfill the demand in this surging Edmonton community.

 

[Magnum23]

I was also wondering for the amounts I get taken off for CPP,EI and FED Tax what portions do I get back for the following year in my Canada RIT?

As a recent graduate:

-Approximately the first $11,000 would be tax exempt (basic personal amount)
-You would likely have education/tuition and textbook credits that were carried forward and can be used to reduce taxes owing.
- Possible student loan interest tax credits - see above
- Public transit credits, moving expense

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/stdnts/ddctns-eng.html

A basic personal tax calculator would indicate you should be expected to pay ~$6,500 without consideration of the above credits/deductions. Less after the fact.

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2013-Personal-Tax

(side note: BC and Ontario are more favourable than Alberta from an after-tax income perspect for income below $115,000. Alberta's flat tax rate of 10% exemplifies that rich get richer...while the poor get...children.)

Back to the original point - you shouldn't be paying too much in taxes as a recent grad. Keep your head up - we all started at low salary levels when starting out as recent grads. The 30% annual raises after doing your entry level contract (usually 2-3 years) are not out of realm of possibility.

Side note: I'm an accountant and if anyone reading this who needs a Corporate tax accountant, send me a private message. Always looking to help fulfill the demand in this surging Edmonton community.

 

[Speed220DChalavan]

Hey Bewafa,

Thx for the info very good to know. I was wondering if its more beneficial to pay off my student loan with a lump sum or continue paying monthly payments and use the interest as tax credit.

I would recommend paying these off as soon as possible. The interest rates on these are quite high - removing the interest itself altogether quickly as possible by making lump sum payment is more beneficial than the tax credit.

If you recently graduated, your lump sum payment that you make will likely include interest anyways - interest begins accruing after you graduate.

Cheers,

 

[Speed220DChalavan]

I was also wondering for the amounts I get taken off for CPP,EI and FED Tax what portions do I get back for the following year in my Canada RIT?

Sorry - just saw this question:

CPP is calculated as [Earnings - $3,500] * 4.95% - limited to $2,356.20 for 2013. As your employer prepares your T4's, it's likely he/she/they withheld the correct amount.

Same scenario for EI.

With regards to tax, your employer is required to withhold source deductions every pay period and remit them to the government.

How much of a refund will you get?

If someone like yourself has alot of other deductions/credits [such as tuition, student loan interest, textbook, moving expenses, donations (in Alberta, donations in excess of $200 - 50% is returned to you in the form of reduces taxes), medical expense credits, or contributed to RRSP's, union dues, incur child care expenses etc.] and your net tax owing is lower than what your employer withheld from your paycheque, you will receive a refund. You will get that after you file your personal taxes (which are due very shortly).

If you're getting too large of a refund consistently, it means you're giving the government an interest-free loan (though right now the interest rates are are historical lows). You can request to reduce tax deductions on your paycheque if that's the case by filling out form T1213.

http://www.cra-arc.gc.ca/E/pbg/tf/t1213/t1213-13e.pdf

Feel free to ask any further questions.

Cheers,

 

[Oscar Acosta]

50k your just getting by after taxes IMO, 75-80K though and you can live a fairly comfortable life. Just gotta watch your housing costs. You don't need a 432,000 dollar home for your first home.

50, you're not getting a house, you're with three other people buying a house and living in a basement on a 400,000 house.

You have to be combining incomes at around 100k, if someone isn't snagging it from Fort McMurray to live in 2 weeks a month. But as an Edmonton family, you're dead to rights.

So you say "whatever, we will rent in the meantime" Go see a place for 2,000 a month, looks good but the hitch "oh yeah, I'm a weird guy that lives in the basement with my entire family"

- Thats not just one absurd example, it happened to us 4 times in a row, before we went to the fifth place and the lady opened the door my wife asked "do you live in the basement?", she said yes, we walked away.

 

[Raab]

50, you're not getting a house, you're with three other people buying a house and living in a basement on a 400,000 house.

You have to be combining incomes at around 100k, if someone isn't snagging it from Fort McMurray to live in 2 weeks a month. But as an Edmonton family, you're dead to rights.

So you say "whatever, we will rent in the meantime" Go see a place for 2,000 a month, looks good but the hitch "oh yeah, I'm a weird guy that lives in the basement with my entire family"

- Thats not just one absurd example, it happened to us 4 times in a row, before we went to the fifth place and the lady opened the door my wife asked "do you live in the basement?", she said yes, we walked away.

Yea exactly, you'll be hard pressed to buy a house here if your only making 50k. But you can live off 50k in Edmonton and get by as a single male. As a sole income provider with a family its harder but doable.

If he could convince a few friends to come with him then rent a place together and share the rent that would be ideal starting out. I know thats what I did when I was 23 living in Calgary making 18 bucks an hour. Had 4 friends and we rented a 5 bedroom house for 2000, split utilities. Still had enough cash left over to basically do anything I wanted.