5. The amount of the deduction corresponding to a GPTI of $1515.15 would be: (refer to

Page 6 of this document)

a. 69.84

b. 24.55

c. 94.39 (69.84+24.55)

d. None of the above

6. A deduction of $108.00 would result from a net taxable income of $1195, and a claim

code of 7. (refer to Page 7 of this document)

a. True

b. False

7. An employee has a net taxable income of $2500.00, paid on a bi-weekly basis. The

amount of provincial income tax to be deducted could be: (refer to Page 7 of this

document)

a. 80.65

b. 162.40

c. 135.15

d. Any of the above

e. None of the above

Questions 8 and 9 refer to the following information:

The yearly maximum deduction for CPP premiums is $2,748.90. A 32-year-old employee has a

GPTI of $1500 per week, is paid weekly, and has worked for the company for over 4 years.

8. On which paycheque (eg: 1st, 15th, etc.) will she hit the maximum?

a. 2nd

b. 37th

c. 38th

d. 39th

e. None of the above

9. How much will be the final deduction for CPP on that paycheque?

a. 0

b. $45.31

c. $73.07

d. 76.50

e. None of the above

10. A 17 year old student works at a local grocery store earning $15.00 per hour, and works

30 hours per bi-weekly pay period. The amount of the EI premium to be deducted from

her cheque should be:

a. 0

b. 7.29

c. 16.08

d. None of the above.

11. Which of the following benefits would be taxable (and pensionable) for a Lakeland

College employee?

a. Gym membership at Motion Fitness

b. Group life insurance

c. Company automobile provided for business use only

d. Alberta Blue Cross health/medical coverage

e. All of the above

f. Only a. and b.

12. Lucky Johnson received the following gifts/awards during the year from his employer:

(all applicable items include sales taxes in the amount)

i. Jacket with the company logo, valued at $250

ii. A watch, valued at $145

iii. A cheque for $300 and a tennis racquet ($195 value) for completing 10

years of service with the company

iv. $100 cash, as a Christmas present

The cheque and cash amounts will both be taxable, but the other items will not be

taxable.

a. True

b. False

13. Alice receives life insurance coverage through her employer. The coverage amount is 3

times her annual salary of $100,000. The premium is $0.35/$1000 of coverage, paid

monthly. Alice is paid bi-weekly. The amount to be included in the calculation of her biweekly GPTI would be:

a. $35.00

b. $48.46

c. $52.50

d. $105.00

e. None of the above

Questions 14 - 17 refer to the following information:

An individual earns $83,500 per year, paid bi-weekly. The employer provides all

employees with a gym membership (valued at $100/month) and provides a car

allowance of $140 per pay period. The employee contributes 4% of her gross earnings to

the company pension plan.

14. Gross Earnings for the payperiod equals:

a. $3211.54

b. 3351.54

c. 3397.69

d. 3479.17

e. 3619.17

15. Gross Pensionable/Taxable Income equals:

a. $3211.54

b. 3351.54

c. 3397.69

d. 3479.17

e. None of the above

16. Gross Insurable Earnings equals:

a. $3211.54

b. 3351.54

c. 3397.69

d. 3479.17

e. None of the above

17. Net Taxable Income equals:

a. $3211.54

b. 3351.54

c. 3397.69

d. 3479.17

e. None of the above

Short-answer calculation question (6 marks)

Betty is paid $2940 bi-weekly, based on a 35 hour work week. She is also paid a car allowance

of $150.00 per pay-period to cover her travel to and from work. During this past pay-period,

Betty worked overtime totalling 13 hours and she is paid time and one-half on all overtime

hours. She also earned commissions of $500 this pay-period. She received a non-taxable meal

allowance of $15/day for 2 days. The employer provides (and pays for) a company group term

life insurance plan - Betty's monthly premiums are $80.00.

Betty also receives a taxable clothing allowance of $150 per month. Finally, Betty also belongs

to the company registered pension plan and contributes a flat $600 per pay-period, as well as

paying union dues of $45 per pay-period. Her federal claim code is 1 and her provincial claim

code is 2.

Calculate Betty's net pay using the calculator method to determine CPP and EI deductions - not

the tables. For income tax amounts, find and use the correct tables from D2L.

(Note: no part marks on this question. Your final answer must be within $0.05 to earn marks.)

Questions 19, 20 and 21 refer to the following information:

An employee has been provided with a company vehicle. His total automobile benefit for 2019

was $6300, and he had the vehicle for 9 months. Assuming that the reduced standby rate was

not available, but the optional (reduced) operating benefit was available and used in calculating

the total benefit:

19. The standby benefit must've been $4200.

a. True

b. False

20. His estimated automobile benefit for 2020, on a monthly basis, would be $700.00.

a. True

b. False

c. Not enough information is provided to answer

21. Bonus: the monthly lease cost, including tax, during 2019, was $700.

a. True

b. False

c. Not enough information is provided to answer