Province: Ontario Use tax year 2021 Payroll Net Pay & VK An employer provides the following, per
Question:
Province: Ontario Use tax year 2021 Payroll
Net Pay & VK
An employer provides the following, per weekly pay:
Group Medical Coverage, valued at $52
Life Insurance, valued at $126
Registered Pension Plan, valued at $82
Tool Allowance, in the amount of $100
Meal Allowance, in the amount of $40
The employee contributes to the following, per weekly pay:
United Way Campaign, in the amount of $20
Garnishment, in the amount of $75
Parking, in the amount of $55
Union dues, in the amount of $130
Group Disability Insurance, in the amount of $90
Additionally, assume that Income Taxes are deducted at the combined rate of 20%, CPP & EI will NOT 'max out' this pay period and vacation time is 'accrued', not paid.
Required: Please demonstrate ALL calculations in details. Thank you
- Calculate the employees Net Pay for one weekly pay period, assuming an annual salary of $117,000;
Please clearly labeling and providing calculations for EACH STEP of the six-step process model provided.
Step 1 | Determine Gross Pay (Earnings) | $ |
Step 2 | Determine Non-Cash Taxable Benefits | $ |
Step 3 | Determine Pensionable Earnings & Calculate CPP CPP Calculation = [(Pensionable Earnings - ( Pay Period Exemption / Pay Frequency) = Contributory Earnings) x Rate %] = CPP Contribution | $ |
Step 4 | Determine Insurable Earnings & Calculate EI | $ |
Step 5 | Determine Net Taxable Income & Calculate Income Taxes | $ |
Step 6 | Calculate Net Pay (Model B) Gross Pay (Earnings) - Step 1 Less: Statutory Deductions CPP (Step 3) EI (Step 4) Income Taxes (Step 5) Less: Non-Statutory Deductions Equals: Net Pay | $ |
- Assuming the employee was hired exactly 7 months ago and is entitled to 5 weeks' vacation per annum, use the salary provided to determine how many VK days are still banked and what VK dollars are owing, after taking 4 days' off.
Please demonstrate ALL calculations in details. Thank you
Total Vacation Days Outstanding ?
Total Vacation Pay Accrued ?
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker