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Surplus Income and Overtime

I live in New Brunswick and get paid by a company that is in the province of Quebec. I am paid salary plus overtime. The overtime is based on the hourly equivilent of my salary. I usually end up owing income tax each spring because my company doesn’t take out enough tax from my overtime pay, which is paid in a seperate deposit from my salary..i.e. When I have OT I get a Salary deposit and a seperate OT deposit into my bank account. I am currently considering bankruptcy due to the fact that my common law marriage recently broke up and I cannot pay all the bills that were all in my name. I am running a deficit of over $700 dollars/month without OT. I also pay child support.
I know that anything over a certain amount will be considered surplus income, but I will still have to work the OT hours when necessary. Since I know that I will have to pay in income tax when my 2006 return is completed, can I ask my company to keep more of my OT pay for tax purposes or would this be considered fraud?

Thanks a bunch!

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One Response to “Surplus Income and Overtime”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

As long as it is a reasonable amount to be withheld I see no reason why this would be considered fraudulent. You are simply protecting yourself from a future tax liability, something that is commonly done and I have often recommended people follow a similar course of action.