1. Nicoleworks for Dynamic Collectablesand earns an annual salary of$40,000.00paid on asemi-monthlybasis. Nicoleuses her car for company business and receives a taxable car allowance of$40.00per pay. The company has a defined contribution pension plan to whichNicolecontributes4%of her salary each pay. Calculate Nicole's Net Pay.

Step One: Determine Gross Earnings

GrossEarnings = Earnings + taxable allowances + non-taxable allowances + cash taxablebenefits

=

Step Two: Determine Taxable Benefits

Non-CashTaxable Benefits =

Step Three: Determine Canada Pension Plan (CPP) contribution

Gross Pensionable/Taxable Income= Earnings + taxable allowances + cash taxable (GPTI) benefits + non-cash taxablebenefits

=

Canada Pension Plan contribution = (GPTI - pay period exemption) x annual CPP

rate

=

Step Four: Determine Employment Insurance (EI) premium

Gross InsurableEarnings (GIE) = Earnings + taxable allowances + cash taxable benefits

=

Employment Insurance premium = GIE x annual EI rate

=

Step Five: Determine Qubec Parental Insurance Plan (QPIP) premium Note: Not applicable as Linda is an Alberta employee
Step Six: Determine federal and provincial income taxes NetTaxable Income = GPTI less authorized deductions employee contributions to aRPP contributions to aRRSP union dues (except for Qubec provincial incometax) deductions for living in a prescribedzone CRA authorizeddeductions = Determine federal and provincial income taxes on Net Taxable Income of $1,440.00 Using the tax tables for an Alberta employee, bi-weekly pay period, claim code 2: Federaltax = Provincialtax = Totaltax =
Step Seven: Determine Northwest Territories (NT)/Nunavut (NU) Payroll Tax Note: Not applicable as Andrew is not subject to the payroll tax
Step Eight: Total Deductions
TotalDeductions = C/QPPcontributions
+ EI premiums
+ QPIP premiums
+ Federal and non-Qubec provincial income taxes
+ Qubec provincial income tax
+ NT/NU payroll tax
+ Other deductions
=
Step Nine: Net Pay
Net Pay	= Gross Earnings - Total Deductions
	=