Assignment 3 Net Pay Calculation 20%

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 learners knowledge of what earnings are subject to which statutory deductions and how to calculate those deductions.

Pre-Assignment Instructions:

1. Read the module 7 content and follow the embedded learning activities
2. Read chapter 6 of the textbook
3. Complete in module assignments

Assignment Tasks:

1. Review the following situations and determine the employees net pay by figuring out what earnings & benefits are subject to Income Tax, Canada / Quebec Pension Plan, Quebec Parental Insurance Plan (if applicable) and Employment insurance. Make sure to reduce net and taxable income by any applicable voluntary/non statutory deductions as well. All rates should be based on 2021.

1. Lawrence works in Alberta and is paid on a bi-weekly basis. He has a claim code of 1 on both his TD1 and TD1AB. He has the following type of earnings, benefits & deductions. He will not max out on CPP or EI this pay and will have full deductions.

1. Regular $2000
2. Vacation Pay $1000
3. Group Life Employer paid Taxable benefit $25
4. RRSP contribution Employee deduction $150
5. Coffee Fund $5

Calculate Lawrences pensionable, insurable and taxable amounts. Then calculate CPP & EI deductions and look up the corresponding federal and provincial tax amounts in the tax tables based on his province, pay frequency and claim codes. Once all deductions have been calculated figure out the net pay.

2. Celine works in Nova Scotia and is paid on a semi-monthly basis. She has a claim code of 2 on both her TD1 and TD1NS. She has the following type of earnings, benefits & deductions. She will not max out on CPP or EI this pay and will have full deductions.

1. Regular $4000.00
2. Overtime $500.00
3. Parking Employer paid Taxable benefit $50.00
4. RPP contribution Employee deduction$300.00
5. Union Dues $25.00

Calculate Celines pensionable, insurable and taxable amounts. Then calculate CPP & EI deductions and look up the corresponding federal and provincial tax amounts in the tax tables based on her province, pay frequency and claim codes. Once all deductions have been calculated figure out the net pay.

• Include a cover page with the course code and course name, the assignment number, the title of your assignment, your student ID, your name, the instructors name, and the date the assignment is created.
• Font should be either Calibri or Arial, 11pt. Text must be double spaced but table may be single spaced.
• You must cite all your sources of information using APA formatting.
• Create a separate reference page that lists all of your sources that you have cited in text. Sources include software used. Also, personal communications from a professional in the field count as a reference source. For citation and referencing examples, see https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/general_format.html

Assignment Grading Rubric

1. 10 Points

1 Point Taxable income:

1 Point Insurable income:

1 Point Pensionable income:

1 Point Federal tax

1 Point Provincial tax

1 Point CPP deduction

1 Point EI deduction

1 Point Gross earnings:

1 Total Deductions

1 Point Net Pay

2. 10 Points

1 Point Taxable income:

1 Point Insurable income:

1 Point Pensionable income:

1 Point Federal tax

1 Point Provincial tax

1 Point CPP deduction

1 Point EI deduction

1 Point Gross earnings:

1 Total Deductions

1 Point Net Pay