Slovak Plumbing Company pays its support staff weekly and its plumbers on a semi-monthly basis. The following support staff payroll information is available for the week ended May 11, 2012:
Employee Name __________ Weekly Earnings ____ Claim Code
Dan Quinn ........................... $ 985 ............ 1
Karol Holub ........................... 1,037 ............ 3
Al Lowhorn ........................... 1,080 ............ 1
Irina Kostra ........................... 950 ............ 4
The plumbers' salaries are based on their experience in the field, as well as the number of years they have worked for the company. All three plumbers have been with the company more than two years. The annual salary of these employees is as follows:
Employee Name ______________ Annual Salary for 2012
Branislav Dolina .............................. $80,700
Henrietta Koleno .............................. 62,500
Aida Krneta .................................... 44,120
Instructions
(a) Prepare a payroll register for May 11, 2012, weekly payroll for the support staff. Calculate the CPP and EI deductions using the formula provided in Appendix 10A. Use the tables in Illustration 10A-3 to determine federal and provincial income taxes.
(b) Calculate the CPP and EI deductions for each of the plumbers for their May 15, 2012, semi-monthly payroll.
(c) In which semi-monthly pay period will each of the plumbers reach their maximum CPP and EI payments for 2012?
TAKING IT FURTHER
Why are there separate payroll deduction tables for determining income tax deductions for weekly, semi-monthly, and monthly pay periods?