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.