Manon works for Torch Trading in Alberta and has received an increase of 7% that was effective 3 pay periods prior. Her earnings, prior to the increase, were $1,200.00 paid on a semi-

monthly basis. The current semi-monthly payroll has already been processed based on Manon's new pay period earnings; the retroactive amount will be pald on a separate cheque

anon's pay period earnings are the same as her net taxable income. Her federal and provincial TD1 claims codes are 1. Calculate the income taxes on the retroactive amount.

Step 1: New earnings

Step 2: Retroactive earnings

Step 3: Federal income tax

Calculate the employee's new pay period earnings.

Your answer

step 4; Provincel income lac

Step 5: Federal tax

Step 6: Provincial tax

Step 7: Total tax