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 2022 to determine your calculations. Only the earnings provided should be included in your calculations. You do not need to calculate vacation or any other amounts.

Tim works in Nova Scotia and is paid on a monthly basis. He is receiving a separate special payment (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.