Question
Becca Harris works for Shallow Inc. in Lethbridge, Alberta. Becca is going to receive a $5,200.00 performance bonus on her next pay for meeting her
Becca Harris works for Shallow Inc. in Lethbridge, Alberta. Becca is going to receive a $5,200.00 performance bonus on her next pay for meeting her previous year's 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 semi-monthly salary is $ 1,900.00 and she has a group term life insurance non-cash taxable benefit of $21.00 per pay. She will not reach the annual maximums for CPP contributions or EI premiums with this payment.
Use this information to answer questions 3-7. Assume 2021 rates.
1- Calculate Beccas CPP contribution on the bonus pay.
2- Calculate Beccas Employment Insurance Premium on the Bonus Payment
3-Using the federal tax tables for an Alberta employee, determine the federal tax to withhold on the entire bonus payment.
Hint: Use the bonus method when calculating income taxes. Look at Example 1 First or once-a-year bonus payment on the Google Doc.
4-Using the provincial tax tables for an Alberta employee, determine the provincial tax to withhold on the entire bonus payment.
Hint: Use the bonus method when calculating income taxes. Look at Example 1 First or once-a-year bonus payment on the Google Doc.
5-Calculate Becca s net bonus payment.
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