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John Peterson was employed by an insurance company in, Lethbridge, Alberta since July 1986. He was earning $1800 biweekly when his employment was terminated on
John Peterson was employed by an insurance company in, Lethbridge, Alberta since July 1986. He was earning $1800 biweekly when his employment was terminated on January 13, 2018. Upon termination, John receives a retiring allowance plus his outstanding vacation pay of $2400 in the same cheque with his regular earning. John did not participate in a company-sponsored RPP or a deferred profit sharing plan. (10 marks) 1) Calculate the amount of retiring allowance. John will receive. 2) Calculate the CPP contribution for John's final pay. 3) Calculate the El premium for John's final pay. 4) How much of John retiring allowance is eligible to transfer to an RRSP? 5) Calculate the tax to be deducted on the remaining retiring allowance, if John had $15,000 of retiring allowance transferred to an RRSP
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