Henry Wadrum plays basketball for the Toronto Raptors, a professional basketball team. He receives an annual salary
Question:
Henry Wadrum plays basketball for the Toronto Raptors, a professional basketball team. He receives an annual salary of $2,400,000 to play for the Raptors. Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, pension plan contributions and income taxes were all deducted from Henry Wadrum’s paychecks.
Henry Wadrum has provided you with a copy of his T4 for the current taxation year. Select information from his T4 is as follows:
• Box 14 – employment income: $2,400,000
• Box 16 – employee’s CPP contributions: $2,898
• Box 18 – employee’s EI premiums: $856
• Box 20 – pension plan contributions: $20,000
• Box 22 – income tax deducted: $1,100,000
Henry Wadrum’s net pay received after source deductions was $1,276,246.
Henry Wadrum’s paid the following amount during the year:
• $5,500 to maintain his membership in the Association of Professional Basketball Players, a recognized professional organization.
What is Henry Wadrum’s minimum employment income for the year? Round your answer to the nearest dollar.
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne