Assignment $2$ Insurable, Pensionable and Taxable Earnings $10\%$

This assignment relates to the following Course Learning Requirements:

CLR $2$: Describe Canadian federal and provincial labour and employment standards as they apply to employers.

CLR $3$: Calculate pay for various types of employees

Objective of this Assignment:

To assess the learner$$s knowledge of what earnings are subject to which statutory deductions and how to calculate those deductions.

To assess the learner$$s ability to research applicable rates to use for the calculations

Pre$-$Assignment Instructions:

$1.$ Read the module $5$ content and follow the embedded learning activities

$2.$ Read chapter $4$ of the textbook

$3.$ Navigate to the respective CRA website and review their taxable benefits documentation

$4.$ Navigate to the Service Canada and Province of Quebec website to obtain the $2023$ rates for CPP$/$QPP and EI$.$

Assignment Tasks:

$1)$ 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.

$2)$ You do not need to calculate the employer portion of CPP$,$ QPP and EI$.$

$3)$ IMPORTANT $$ show all calculations and clearly label: pensionable earnings; insurable earnings; CPP deduction, QPP deduction; and EI deduction.

$4)$ Use rates from $2023$ to determine your calculations. Only the earnings provided for each pay period should be included in your calculations. You do not need to calculate vacation or any other amounts.

a$)$ Jane works in Ontario and is paid on a bi$-$weekly basis. She has the following type of earnings & benefits. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

i$)$ Regular $$1,800$

ii$)$ Vacation Payout $$500$

iii$)$ Night Shift Premium $$50$

iv$)$ Group Life $$ Employer paid Taxable benefit $$15$

b$)$ Lane works in Quebec and is paid on a semi$-$monthly basis. He has the following types of earnings & benefits. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

i$)$ Statutory Holiday Pay $$200$

ii$)$ Regular $$1650$

iii$)$ Employer paid Parking $$50$

c$)$ 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.