Many Canadians are pleased to receive a tax refund each spring, but what if you had that money to spend each month when you really needed it and were able to contribute more to your RRSP contribution at the same time? Your employer is obligated to withhold income tax from your gross salary but you may be giving the government a free annual loan. The withholding amount may be reduced depending on the deductions and tax credits available to you. Your employer may be able to take into account your current RRSP contributions when determining your income tax withholdings if the employer makes the contributions on your behalf or with the permission of the Canada Revenue Agency (by filing a T1213). Your income tax withholdings could be reduced and your take home pay could be increased by having your employer factor in regular RRSP contributions. For more information on this and other tax planning questions, please contact us.