1. Review the following situations and determine what earnings & benefits are subject to Canada / Quebec Pension Plan and Employment insurance. After you have determined the pensionable and insurable earnings calculate the CPP/QPP and EI employee deductions. Use rates from 2019 to determine your calculations.

   a.            Jane works in Ontario and is paid on a bi-weekly basis. She has the following type of earnings & benefits. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

   i.              Regular $1600

   ii.             Vacation Pay $500

   iii.            Night Shift Premium $25

   iv.           Group Life – Employer-paid Taxable to benefit $15

   b.            Lane works in Quebec and is paid on a semi-monthly basis. He has the following types of earnings & benefits. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

   i.              Statutory Holiday Pay $120

   ii.             Regular $1200

   iii.            Employer-paid Parking $30

   c.             Tim works in Nova Scotia and is paid on a monthly basis. He is receiving a special pay (in addition to his 12 pays in the year) for a long service award. He is receiving an amount of $500 cash and he has not received a long service-aware for 5 years. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

   
   

Answer rating: 100% (QA)

A Pensionable and Insurable According to the Government of Canada the maximum pensionable earnings under the Canada Pension Plan CPP for 2019 are 5740... View the full answer