Western Electric Company pays its support staff weekly and its electricians on a semi-monthly basis. The following support staff payroll information is available for the week ended June 9, 2018:

The electricians? salaries are based on their experience in the field, as well as the number of years they have worked for the company. All three electricians have been with the company more than two years. The annual salaries of these employees are as follows:

Employee Name Annual Salary for 2018Sam Goodspeed ............................... $43,440Marino Giancarlo ............................... 64,770Hillary Ridley ....................................... 76,880

Instructions

a. Prepare a payroll register for the June 9, 2018, weekly payroll for the support staff . Calculate the CPP and EI deductions using the formulas provided in Appendix 10A. Use the tables in Illustration 10A.5 to determine federal and provincial income taxes.

b. Calculate the CPP and EI deductions for each of the electricians for their June 15, 2018, semi-monthly payroll.

c. In which semi-monthly pay period will each of the electricians reach their maximum CPP and EI payments for 2018?

Why are there separate payroll deduction tables for determining weekly, semi-monthly, and monthly income tax deductions?

Illustration 10A.5

Transcribed Image Text:

Employee Name Weekly Earnings $ 946 Claim Code Chris Tanm 2 Terry Ng Olga Stavtech Alana Mandell 1,015 4 1,015 1,000 1 1