An employee earns $55,000 per year and is paid on asemi-monthlypay schedule. The employee enjoys the benefit of a company-paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each pay cycle payment. This pay cycle included 15 hours of approved overtime worked over the normal 40-hour workweek.The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.

Required: Use the 13 steps payroll format to calculate his net pay.

1. Gather all information needed for payroll processing 2. Calculate taxable benet amounts needed for calculation of pensionable and taxable income 3. Calculate gross earnings: WagesISalaries Plus taxable allowances Plus nontaxable allowances 4. Calculate pensionable earnings Gross earnings Less non-taxable allowances Les termination payments Plus taxable benefits 5. Calculate insurable earnings: Gross earnings Less nontaxable allowances Less termination payments Calculate Canada Pension Plan [CPP] contributions Pensionable earnings Less pay cycle exemption Subtotal x 5.25% Calculate employment insurance premiums: Insurable earnings x 1.53% Calculate gross taxable earnings: Gross earnings Less nontaxable allowances Plus taxable benets Less termination payments Calculate net taxable earnings: Gross taxable earnings Less employee deductions for RPP, RRSP Less Union Dues Less any personal exemption for livingr in a prescribed zone Less any other CRA approved amounts