Part 2: Net Pay & PD7A (10 Marks)

Sally works for Nikko Enterprises and earns $990 bi-weekly. She has just received a 2% pay increase, effective this current pay period. In addition, Sally is entitled to five weeks vacation pay, which is paid each pay period.

Each pay, Sally also receives a group medical benefit of $40 (cost is shared 50/50 with her employer) and group term life insurance (benefit is valued at $1,250 per annum). Both quoted plan prices include applicable sales tax.

In addition, the following are other deductions from Sallys pay, each bi-weekly period; $12 for union dues, $28 for a company loan repayment and $7 toward an employee social fund.

Note: Assume income taxes are calculated at a combined rate of 18%.

Required:

a) Determine Sallys Net Pay for one bi-weekly pay period.

b) What is the total amount owing to the CRA for statutory deductions.

NOTE: marks will be allocated for clearly labeling and providing calculations for EACH STEP of the attached process models presented.