Question
Becca Harris works for Shallow Inc. in Lethbridge, Alberta. Becca is going to receive a $6,000.00 performance bonus on her next pay for meeting her
Becca Harris works for Shallow Inc. in Lethbridge, Alberta. Becca is going to receive a $6,000.00 performance bonus on her next pay for meeting her previous year objectives. The bonus is the first Becca has received this year and will be paid on a separate cheque. Becca claims code 1 on her federal and provincial TD1s. Her regular bi-weekly salary is $1,650.00 and she has a group term life insurance non-cash taxable benefit of $12.50 per pay. She will not reach the annual maximums for CPP contributions or EI premiums with this payment.
a) Calculate Becca’s CPP contribution.
b) Calculate Becca’s Employment Insurance Premium.
c) Using the federal tax tables for an Alberta employee, determine the federal tax to withhold on the entire bonus payment.
d) Using the provincial tax tables for an Alberta employee, determine the provincial tax to withhold on the entire bonus payment.
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Essentials of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
8th edition
78034752, 978-0078034756
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