Part 4: Retro-Active Payment (8 Marks)

Darlene has been earning $25/hr and regularly works 90 hours each monthly pay period. Due to the completion of union negotiations, on September 1st, she was awarded a $6/hr pay increase, effective from May 1st. Assume Darlene was being taxed @ 16% before her increase and will now be taxed @ 19%.

Note: Darlene will not max out CPP & EI deductions.

Required:

Calculate the gross retro-active payment owing and all applicable statutory deductions for this retro-active payment, assuming the employee will receive it on a separate cheque from her regular monthly earnings.

NOTE: Input answers below and demonstrate ALL calculations.

Retro-Active Pay Owing (Gross) = $

CPP = $

EI = $

Income Taxes = $