Question
Kennedy currently works for Boston Pizza and earns $50,000 per year. She pays a 24.5% tax rate. An out of province company, Massachusetts Cuisine, has
Kennedy currently works for Boston Pizza and earns $50,000 per year. She pays a 24.5% tax rate.
An out of province company, Massachusetts Cuisine, has offered her $48,000 per year starting on Jan 1st. As this is a contractor position, Kennedy's effective tax rate will drop to 17.5% (mainly due to moving expenses resulting from relocation to a new area for work). Also, Kennedy has heard that CPP will drop to 5.00% and EI to 1.50% in the new year.
Assuming she receives a paycheck on the 15th and end of each month, how much more will Kennedy's Jan 15th paycheck amount to (compared to her Dec 31st paycheck)?
Also, give Kennedy some advice on what she should do.
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