This document discusses payroll deductions. It defines gross pay as earnings before deductions and net pay as earnings after deductions. There are three mandatory deductions for Canadian employees who earn over a certain annual income amount: income tax, employment insurance, and Canada Pension Plan contributions. Other common optional deductions are listed as examples. The document provides two examples of calculating net pay after accounting for various deduction amounts and personal claim codes. It notes that contributions to RRSP/RPP plans or union dues can reduce tax obligations. Homework problems from the document are listed at the end.