Background

You are the HR Manager of a home improvement and repairs company in Waterloo $($Ontario$)$ region, Handy Howie's $($HH$).$ Recently HH completed a hiring campaign and created a new department, 'Special Projects' The headcount of this department is five. It is led by the Director, Special Projects, and includes three analysts and an administrative assistant. Compensation details of all employees in this department areas follows:

Shahid Singh, Director:

Base Salary: $$190,000$

CPP annual maximum pensionable earnings reached on May $31$

El annual maximum pensionable earnings reached on May $31$

Mariya Lopez, Analyst:

Base Salary: $$75,000$

CPP and EI annual maximum pensionable earnings not yet reached.

Gracyn Stiller, Analyst:

Base Salary: $$80,000$

CPP and EI annual maximum pensionable earnings not yet reached.

Jun Wang, Analyst:

Base Salary: $$82,000$

CPP annual maximum pensionable earnings reached on August $31$

El annual maximum pensionable earnings reached on August $31$

Jerry Hopper, Administrative Assistant:

Base Salary: $$54,000$

CPP and EI annual maximum pensionable earnings not yet reached.

Employees are paid on the $16$ th and the last day of the month $(28,29,30,31)$ as the case may be$.$ This pay is calculated based on the most recent semi$-$monthly period. E$.$g$.,$ for the semi$-$monthly period of September $1-15,$ employees will be paid on September $16.$

Payroll trial calculations:

Today is September $13.$ You will be running the first payroll for this department in two days. Prior to that, you would like to perform certain payroll and fringe benefit related calculations to use for crosschecking when the main payroll is run.

Towards that end, perform the following calculations:

Required:

All the calculations below pertain to the pay period of September $1-15.$ Round all calculations tothe nearest dollar. Show all your calculations and do not compare with online calculators. You will receive partial marks to the extent they have been calculated correctly.

question $1$:

Calculate gross pay, Federal Taxes and Provincial $($Ontario$)$ taxes that would be deducted from the gross pay of each employee for the semi$-$monthly period of September $1-15.$ Use information provided in Appendix one.

Two $?$

Calculate the amount of CPP and El that would be deducted from the gross pay of each employee for the bi$-$monthly period of September $1-15.$ Use information provided in Appendix two and three.

Calculate the employers' contribution of CPP and EI which STI has to pay for each employee. Use information provided in Appendix two and three.

Three?

Based on your calculations in required one and two above, calculate the net pay for each employee for the pay period September $1-15.$ Use information provided in Appendix three.

Four?

Calculate the total payroll cost for the Corporate Services department for the pay period: September $1-$

$15.$ Use relevant data from calculations performed earlier in required one $-$ three.

APPENDIX ONE

Federal Income Tax rates:

$\backslash$table$[[$Tax Rate,Taxable Annual Income$],[15\%,$$$49,020,$ and$],[20\mathrm{.}5\%,$$$49,021$ up to $$98,040,$ and$],[26\%,$$$98,041$ up to $$151,978$ and$],[29\%,$$$151,979$ up to $$216,511$ and$],[33\%,$$$216,512$ and up$]]$

$\backslash$table$[[$Ontario Tax rates:$],[$Tax Rate,Taxable Annual Income$],[5\mathrm{.}05\%,$First $$45,142$ and$],[9\mathrm{.}15\%,$$$45,143$ up to $$90,287$ and$],[11\mathrm{.}16\%,$$$90,288$ up to $$150,000,$ and$],[12\mathrm{.}16\%,$$$150,001$ up to $$220,000,$ and$],[13\mathrm{.}16\%,$$$220,001$ and up$]]$

APPENDIX TWO

CPP CALCULATION CRITERIA

$\backslash$table$[[$CPP calculation details:$],$Annual maximum Pensionable Earnings,$$64,900,$ annual basic exemption $$3500,$

Annual maximum contributory earning $$61400,$ cpp contribution rate $5\mathrm{.}45\%,$ annual maximum cpp employee$/$employeer contribution $$3346\mathrm{.}30$

APPENDIX THREE

EI CALCULATION CRITERIA

$\backslash$table$[[$Employment Insurance $($EI$)-$ Non$-$Qu$$bec Employee$],[$Annual Maximum Insurable Earnings,$$60,300,$employee contribution rate $1\mathrm{.}58\%,$ employer contribution rate is $1\mathrm{.}4$ times employee contribution rate, annual maximum employee contribution $$952\mathrm{.}74,$ annual maximum employer contribution $$1333\mathrm{.}84.$

Calculate federal and provincial taxes, the amount and rates applied, calculate CPP and EI$.$ Calculate net pay after all deductions