Question
An employee earns $60,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone
An employee earns $60,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $160 per month) and receives 4% vacation pay on each payment. This pay cycle included 16 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $450. The employee contributes 6% of their regular wages to a Registered Retirement Savings Plan each pay cycle. 1. Calculate the Gross Earnings. 2. Calculate the Pensionable Earnings. 3. Calculate contributory earnings 4. Calculate the Insurable Earnings. 5. Calculate the Canada Pension Plan Contribution. 6. Calculate the Employment Insurance Premium. 7. Calculate the Gross Taxable Earnings. 8. Calculate the Net Taxable Earnings. 9. The employee is a Claim Code 1 both Federally and Provincially and works in Ontario. calculate Federal tax deductions 10. Calculate Provincial tax deductions 11. Calculate total deductions 12. Calculate employer payroll liability 13. Write payroll journal entries
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