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Chapter 5 Question

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9 views

Chapter 5 Question

Uploaded by

bavanthinil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1. Tanya works for Siesta Systems in Alberta and is paid $25.20 per hour.

In this weekly pay period


she worked 9 hours on Monday, 10 hours on Tuesday, 7 hours on Wednesday, 7 hours on Thursday and
10 hours on Friday. As per the company policy, Tanya is paid overtime at 1.5 times her regular rate after
working 8 hours per day or 40 hours per week. Each pay she receives a group term life insurance non-
cash taxable benefit of $17.25 paid 100% by her employer and contributes 4%
of her gross regular earnings (not including overtime) to a Registered Retirement Savings Plan. Tanya
also has $13.00 for union dues and $7.00 for dental coverage deducted each pay. Her federal and
provincial TD1 claim codes are 1 and she will not reach the annual maximums for Canada Pension Plan
or Employment Insurance with this payment.
Calculate Tanya's net pay, following the order of the steps in the net pay template.
Salary per hour $ 25.20
Salary per period $ 1,121.40
group term life insurance non-cash taxable benefit $ 17.25
Registered Retirement Savings Plan $ 40.32
Union dues $ 13.00
Dental coverage $ 7.00

PE/GTI $ 1,138.65
Contributary earning $ 1,071.35
Enhanced CPP $ 10.71

Net taxable income $ 1,078.33


FED tax $ 171.80
Prov.tax $ 83.00
Total income tax

CPP $ 63.75
EI $ 18.28

Gross Earnings (Pay) $ 1,121.40


Pensionable Earnings (PE) $ 1,138.65
Insurable Earnings (IE) $ 1,121.40
Net Taxable Income (CRA)(NTI) $ 1,078.33
Net Taxable Income (RQ)(NTI) ------
Statutory Deductions
C/QPP Contribution $ 63.75
EI Premium $ 18.28
QPIP Premium -----
Income Tax (Federal) $ 171.80
Income tax (Provincial) $ 83.00
Other Deductions
Union Dues $ 13.00
Registered pension plan (RPP) $ 40.32
Employee-paid benefit plan Premium (e.g. dental) $ 7.00
Registered Retirement Savings Plan (RRSP) contribution
Charitable Donation
Social Club

Total Deductions $ 397.14


Net Pay $ 724.26

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