Megan is a proprietor and owns a hair salon. Determine the total Canada Pension Plan (CPP)...

   

Transcribed Image Text:

Megan is a proprietor and owns a hair salon. Determine the total Canada Pension Plan (CPP) and Employment Insurance (El) premiums Megan must pay through her self- employment using the given CPP and El information below. Megan had net earnings of $75,000 during the year (note that Megan has not registered with Canada Employment Insurance Commission and is accordingly not eligible to access any of the 5 types of El special benefits). CPP: YMPE is $57,400 YBE is $3,500 and contribution rate is 5.1% for each employee and employer. El: Maximum Insurable Earnings for El is $53,100 and the rate is 1.62% for employees. Select one: a. $2,748.90 and $0, respectively b. $2,927.40 and $860.22, respectively c. $3,645.50 and $860.22, respectively d. $5,497.80 and $0 respectively Megan is a proprietor and owns a hair salon. Determine the total Canada Pension Plan (CPP) and Employment Insurance (El) premiums Megan must pay through her self- employment using the given CPP and El information below. Megan had net earnings of $75,000 during the year (note that Megan has not registered with Canada Employment Insurance Commission and is accordingly not eligible to access any of the 5 types of El special benefits). CPP: YMPE is $57,400 YBE is $3,500 and contribution rate is 5.1% for each employee and employer. El: Maximum Insurable Earnings for El is $53,100 and the rate is 1.62% for employees. Select one: a. $2,748.90 and $0, respectively b. $2,927.40 and $860.22, respectively c. $3,645.50 and $860.22, respectively d. $5,497.80 and $0 respectively

Answer rating: 100% (QA)

To calculate the Canada Pension Plan CPP and Employment Insurance EI premiums that Megan must pay we ... View the full answer