Part C Case Study In this case study you will be required to calculate the gross to net pay for three employees. You will also be required to calculate other employer costs based on the information provided. This case study will demonstrate that you know how to use what you have learned in this course. She has the following personal deductions from her pay: $5.00 per pay donation to the United Way Federal and Provincial income tax - she is claiming maximum tax (Claim Code 0) plus an additional $10.00 per pay Pay Period 6 Answer Majic Corporation sells phone cases to public and private companies. They are located at 123 Locus Rd, Toronto, ON M1H 453. They employ 200 full time employees who work in sales, customer service and office support roles. Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Group term life insurance AD & D United Way Net pay Employer health tax Total Marks Mark /1 /1 /1 /1 /1 /1 /1 /1 /1 /1 They have had an annual remuneration of over $1,000,000 for the past several years therefore their EHT rate is 1.95%. 10 Pay period #1 started December 27, 2020. All are paid on a bi-weekly basis. All benefits are processed each pay on an as enjoyed basis. The first pay day for employees is Jan 13, 2021. Pay Period 7 Answer They have three staff in the Customer Service Department answering questions from clients and the general public. They all work Monday to Friday and do not work statutory holidays but are paid for them. A) Marijke has been with Majic for 5 years and is the Customer Service Supervisor. She earns $2000.00 bi-weekly working 35 hours per week. She does not work any overtime. She received a $300.00 one-time bonus pay period 6 Her employer provides her with the following: Health and Dental fully paid for by the employer at a monthly cost of $469.00 Group Term life insurance - 2x her annual salary at a cost of $0.69 per month per $1000 of coverage paid for by the employer AD&D - $50,000.00 at a cost of $0.19 per month per $1000 of coverage paid for by the employer Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Group term life insurance AD & D United Way Net pay Employer health tax Total Marks Mark /1 /1 /1 71 /1 /1 71 /1 /1 /1 /10 TU Pay Period 7 Answer B) Neema has been with Majic for 3 years and answers calls specifically from clients She earns $18.25 per hour and works 35 hours per week. She also does not work any overtime. She is paid bi-weekly. Her employer provides the following: Health and Dental - at a total cost of $469.00 per month, 50% is paid by the employer and 50% is paid for by Neema Group Term life - $50,000.00 at a cost of $0.45 per month per $1000 of coverage paid for by the employer She does not receive AD&D Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Health and Dental Cost Group term life insurance Net pay Employer health tax Total Marks Mark 71 /1 /1 /1 /1 /1 /1 /1 /1 19 She has the following deductions: Federal and Provincial taxes - she is claiming basic tax (Claim code 1) plus an additional $5.00 per pay Calculate the following for Neema: Pay Period 6 Answer Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Health and Dental Cost Group term life insurance Net pay Employer health tax Total Marks Mark /1 /1 /1 /1 11 11 /1 /1 /1 19 Roger started with Majic this year. His first day was January 6, 2021. He was hired on a temporary basis to cover an employee who was off on maternity leave. He earns $16.50 per hour. He is covered under the Employment Standards Act of Ontario. He works 7 hours per day 5 days per week and receives 4% vacation pay on each pay cheque. He does not receive any benefits nor does he work overtime. He has taken one unpaid day off March 30th. He receives 7 hours of statutory holiday pay for any statutory holidays and does not work those days. He too is paid bi-weekly He has the following deductions: Federal and Provincial taxes he is claiming basic tax (Claim code 1) He has found a full-time job and his last day to work will be May 13, 2021 Pay Period 6 Answer D) Now that you have calculated the net pays for each of these employees, calculate the totals for all three employees for following: Pay Period 6 Mark /1 11 /1 /1 /1 /1 /1 17 Answer Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks Mark Total Gross earnings for all 3 employees Total Taxable income for all 3 employees Total employee portions for CPP Total employer portions for CPP Total employee portions for El Total employer portions for El Total Federal and Provincial taxes Total employee portion of Health benefits Total employer portion of Health benefits Total for United Way Total For Group Insurance Total AD&D Total EHT Total Marks Pay Period 7 Answer 113 Mark /1 11 11 11 /1 /1 /1 17 Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks Pay Period 7 Answer Mark Total Gross earnings for all 3 employees Total Taxable income for all 3 employees Total employee portions for CPP Total employer portions for CPP Total employee portions for El Total employer portions for El Total Federal and Provincial taxes Total employee portion of Health benefits Total employer portion of Health benefits Total for United Way Total for Group Insurances Total AD&D Total EHT Total Marks 713 E) Journal Entry for Pay Periods 6 and 7. Please remember to record all requirements a journal entry must have. Using the grid below complete the journal entry for these pay periods of using the amounts you calculated in section D. Total marks 17 F) As previously mentioned, Roger has decided to leave Majic. His last day worked will be May 13th. He will require a Record of Employment. Complete the boxes below with the correct amounts/information that should be included in each of the sections. Debit Credit Account Wage Expense Mark /1 Amount CPP Expense /1 Box Box 10 Mark /1 CPP Payable /1 Box 11 /1 El Expense /1 Box 12 /1 El Payable /1 Box 14 /1 Fed & Prov tax payable /1 Box 15 A /1 Health expense /1 Box 15 B /1 Health payable /1 Box 16 /1 United Way payable /1 Total Marks 17 /1 Group Insurances expense Group Insurances payable /1 /1 EHT expense EHT payable What will Service Canada use the information provided on the Record of Employment to determine? (1 marks) /1 /1 11 Total Marks AD & D Expense /1 AD & D Payable /1 Net Pay /1 Total /1 Total Marks /17 Answer Description Company Year Mark /1 /1 /1 /1 /1 G) Year End In this question you will need to complete the boxes for a T4 for Martha a Majjis employee, using the following information. Enter your answers in the grid provided below the copy of the T4. This would be her 2020 T4. 1. Gross earnings = $63500.00 2. Her taxable benefit for Group term life insurance was $81.50 3. Her taxable benefit for AD&D was $16.25 4. Her employer paid Health and Dental was $440.00 5. Her total Federal and Provincial Taxes were $8825.33 6. Her union dues were $104.00 7. You will need to calculate her CPP and El deductions. Box 10 Province of Employment Box 14 Employment Income Box 16 Employee's CPP contributions Box 18 Employee's El premiums Box 22 Income Tax deducted Box 24 El insurable earnings Box 26 CPP/QPP pensionable earnings Other Information-Code/Box #44 Other Information-Code/Box #40 Total Marks /1 /1 /1 /1 12 /1 /12 Explain why you would not issue a T4A for Martha (1 mark) 11 THEAD Employer's name - Nom de l'employeur 1. Curado Rowene hoce du revenu du Canada T4 Year Statement of Remuneration Paid Anne Etat de la rmunration paye Employment income-ne 101 Income down Revenus emploi 101 Imple sur le reven 14 22 54 Employer's member meiro de compte de legio Province of employment Employee's Patributions in 300 El insuraming Province dengan de fer plotu RPC-30 Ganasses 10 16 24 Sociale Empt-Empion Numire ce soite CPP OPP EI PPIP Employment code Employees Opcoin 300 CPP OPP personale caring 28 Cotos de employee Gainsboro per ERRO 29 26 RPR AE PAP players Employee's name and address - Nom et adresse de l'employ Conto delle Uniondesine 12 Costions syndicales - Igre12 Le nom 18 Costune209 Recorbutions in 2011 Chrono-In begre 20 46 Fachleur de lance - Igre100 Penso mentine 20 DROPS Nandun SPA doo 52 50 Employee's PPP mer Pinu Csations de l'emploi RPAP-Vorau were Gans AP 55 56 802 C Amos Box - Casi Amount-Mantan Box Case Amount Montare Other information ( see oven Bosne Amount-Wow Ber-Cas Amount - Moot - Ber-Case Amount - Montent reglements (vor u verso Part D Part C Case Study In this case study you will be required to calculate the gross to net pay for three employees. You will also be required to calculate other employer costs based on the information provided. This case study will demonstrate that you know how to use what you have learned in this course. She has the following personal deductions from her pay: $5.00 per pay donation to the United Way Federal and Provincial income tax - she is claiming maximum tax (Claim Code 0) plus an additional $10.00 per pay Pay Period 6 Answer Majic Corporation sells phone cases to public and private companies. They are located at 123 Locus Rd, Toronto, ON M1H 453. They employ 200 full time employees who work in sales, customer service and office support roles. Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Group term life insurance AD & D United Way Net pay Employer health tax Total Marks Mark /1 /1 /1 /1 /1 /1 /1 /1 /1 /1 They have had an annual remuneration of over $1,000,000 for the past several years therefore their EHT rate is 1.95%. 10 Pay period #1 started December 27, 2020. All are paid on a bi-weekly basis. All benefits are processed each pay on an as enjoyed basis. The first pay day for employees is Jan 13, 2021. Pay Period 7 Answer They have three staff in the Customer Service Department answering questions from clients and the general public. They all work Monday to Friday and do not work statutory holidays but are paid for them. A) Marijke has been with Majic for 5 years and is the Customer Service Supervisor. She earns $2000.00 bi-weekly working 35 hours per week. She does not work any overtime. She received a $300.00 one-time bonus pay period 6 Her employer provides her with the following: Health and Dental fully paid for by the employer at a monthly cost of $469.00 Group Term life insurance - 2x her annual salary at a cost of $0.69 per month per $1000 of coverage paid for by the employer AD&D - $50,000.00 at a cost of $0.19 per month per $1000 of coverage paid for by the employer Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Group term life insurance AD & D United Way Net pay Employer health tax Total Marks Mark /1 /1 /1 71 /1 /1 71 /1 /1 /1 /10 TU Pay Period 7 Answer B) Neema has been with Majic for 3 years and answers calls specifically from clients She earns $18.25 per hour and works 35 hours per week. She also does not work any overtime. She is paid bi-weekly. Her employer provides the following: Health and Dental - at a total cost of $469.00 per month, 50% is paid by the employer and 50% is paid for by Neema Group Term life - $50,000.00 at a cost of $0.45 per month per $1000 of coverage paid for by the employer She does not receive AD&D Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Health and Dental Cost Group term life insurance Net pay Employer health tax Total Marks Mark 71 /1 /1 /1 /1 /1 /1 /1 /1 19 She has the following deductions: Federal and Provincial taxes - she is claiming basic tax (Claim code 1) plus an additional $5.00 per pay Calculate the following for Neema: Pay Period 6 Answer Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Health and Dental Cost Group term life insurance Net pay Employer health tax Total Marks Mark /1 /1 /1 /1 11 11 /1 /1 /1 19 Roger started with Majic this year. His first day was January 6, 2021. He was hired on a temporary basis to cover an employee who was off on maternity leave. He earns $16.50 per hour. He is covered under the Employment Standards Act of Ontario. He works 7 hours per day 5 days per week and receives 4% vacation pay on each pay cheque. He does not receive any benefits nor does he work overtime. He has taken one unpaid day off March 30th. He receives 7 hours of statutory holiday pay for any statutory holidays and does not work those days. He too is paid bi-weekly He has the following deductions: Federal and Provincial taxes he is claiming basic tax (Claim code 1) He has found a full-time job and his last day to work will be May 13, 2021 Pay Period 6 Answer D) Now that you have calculated the net pays for each of these employees, calculate the totals for all three employees for following: Pay Period 6 Mark /1 11 /1 /1 /1 /1 /1 17 Answer Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks Mark Total Gross earnings for all 3 employees Total Taxable income for all 3 employees Total employee portions for CPP Total employer portions for CPP Total employee portions for El Total employer portions for El Total Federal and Provincial taxes Total employee portion of Health benefits Total employer portion of Health benefits Total for United Way Total For Group Insurance Total AD&D Total EHT Total Marks Pay Period 7 Answer 113 Mark /1 11 11 11 /1 /1 /1 17 Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks Pay Period 7 Answer Mark Total Gross earnings for all 3 employees Total Taxable income for all 3 employees Total employee portions for CPP Total employer portions for CPP Total employee portions for El Total employer portions for El Total Federal and Provincial taxes Total employee portion of Health benefits Total employer portion of Health benefits Total for United Way Total for Group Insurances Total AD&D Total EHT Total Marks 713 E) Journal Entry for Pay Periods 6 and 7. Please remember to record all requirements a journal entry must have. Using the grid below complete the journal entry for these pay periods of using the amounts you calculated in section D. Total marks 17 F) As previously mentioned, Roger has decided to leave Majic. His last day worked will be May 13th. He will require a Record of Employment. Complete the boxes below with the correct amounts/information that should be included in each of the sections. Debit Credit Account Wage Expense Mark /1 Amount CPP Expense /1 Box Box 10 Mark /1 CPP Payable /1 Box 11 /1 El Expense /1 Box 12 /1 El Payable /1 Box 14 /1 Fed & Prov tax payable /1 Box 15 A /1 Health expense /1 Box 15 B /1 Health payable /1 Box 16 /1 United Way payable /1 Total Marks 17 /1 Group Insurances expense Group Insurances payable /1 /1 EHT expense EHT payable What will Service Canada use the information provided on the Record of Employment to determine? (1 marks) /1 /1 11 Total Marks AD & D Expense /1 AD & D Payable /1 Net Pay /1 Total /1 Total Marks /17 Answer Description Company Year Mark /1 /1 /1 /1 /1 G) Year End In this question you will need to complete the boxes for a T4 for Martha a Majjis employee, using the following information. Enter your answers in the grid provided below the copy of the T4. This would be her 2020 T4. 1. Gross earnings = $63500.00 2. Her taxable benefit for Group term life insurance was $81.50 3. Her taxable benefit for AD&D was $16.25 4. Her employer paid Health and Dental was $440.00 5. Her total Federal and Provincial Taxes were $8825.33 6. Her union dues were $104.00 7. You will need to calculate her CPP and El deductions. Box 10 Province of Employment Box 14 Employment Income Box 16 Employee's CPP contributions Box 18 Employee's El premiums Box 22 Income Tax deducted Box 24 El insurable earnings Box 26 CPP/QPP pensionable earnings Other Information-Code/Box #44 Other Information-Code/Box #40 Total Marks /1 /1 /1 /1 12 /1 /12 Explain why you would not issue a T4A for Martha (1 mark) 11 THEAD Employer's name - Nom de l'employeur 1. Curado Rowene hoce du revenu du Canada T4 Year Statement of Remuneration Paid Anne Etat de la rmunration paye Employment income-ne 101 Income down Revenus emploi 101 Imple sur le reven 14 22 54 Employer's member meiro de compte de legio Province of employment Employee's Patributions in 300 El insuraming Province dengan de fer plotu RPC-30 Ganasses 10 16 24 Sociale Empt-Empion Numire ce soite CPP OPP EI PPIP Employment code Employees Opcoin 300 CPP OPP personale caring 28 Cotos de employee Gainsboro per ERRO 29 26 RPR AE PAP players Employee's name and address - Nom et adresse de l'employ Conto delle Uniondesine 12 Costions syndicales - Igre12 Le nom 18 Costune209 Recorbutions in 2011 Chrono-In begre 20 46 Fachleur de lance - Igre100 Penso mentine 20 DROPS Nandun SPA doo 52 50 Employee's PPP mer Pinu Csations de l'emploi RPAP-Vorau were Gans AP 55 56 802 C Amos Box - Casi Amount-Mantan Box Case Amount Montare Other information ( see oven Bosne Amount-Wow Ber-Cas Amount - Moot - Ber-Case Amount - Montent reglements (vor u verso Part D