Question
Alaya works for ABBA in British Columbia and earns an annual salary of $84,000.00 and is paid monthly. Alayas employment will be terminated at the
Alaya works for ABBA in British Columbia and earns an annual salary of $84,000.00 and is paid monthly. Alayas employment will be terminated at the end of this pay period. She is entitled to 6% vacation pay on her vacationable earnings of $88,000.00 and 4 weeks' wages in lieu of notice. Her vacation-pay and wages in lieu of notice will be paid together on a separate payment from her regular pay.
Alayas federal and provincial TD1 claim codes are 2. She will not reach the Canada Pension Plan or Employment Insurance annual maximums this pay period.
Calculate the employees net pay on the separate payment. Use 2020 rates. Use the table titled British Columbia - Effective July 1, 2020.
Discretion: British Columbia requires employers to pay their employees at least twice a month with intervals no longer than sixteen days (Dryden, 2019). However, I am assessing your ability to calculate net pay, so use the fictitious information above to determine Alayas net pay for the separate termination payment.
Hint: Use the bonus method when calculating income taxes.
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