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. 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. They have had an annual remuneration of over $1,000,000 for the past several years therefore their EHT rate is 1.95%. Pay period #1 for those paid bi-weekly started December 22, 2019. The first pay day for these employees is Friday Jan 10, 2020. They have three staff in the Customer Service Department answering questions from clients and the general public. All benefits and deductions are processed on a per pay period basis. 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. Her employer provides 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 AD&D - $50,000.00 at a cost of $0.19 per month per $1000 of coverage 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 3 Answer Mark 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 /10 Annnnnnnn Pay Period 4 Answer Mark 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 /10 nnnnnnnn 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 and receives overtime per ESA. She has not worked any overtime to date. Her employer provides the following: Health and Dental 50% paid by the employer and 50% paid for by Neema at a cost of $469.00 per month Group Term life - $50,000.00 at a cost of $0.45 per month per $1000 of coverage She does not receive AD&D 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 3 Answer Mark 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 nnnnn19 Pay Period 4 Answer Mark 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 Annnnn19 C) Roger started with Majic this year. His first day was January 6, 2020. 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 and receives 4% vacation pay on each pay cheque. He does not receive any benefits. He has not taken any days off nor has he worked any overtime. He received stat pay for the following holidays: Family day he received 7.28 hours of stat Good Friday he received 7.28 hours of stat Victoria Day he received 7.28 hours of stat 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 June 26, 2020 Pay Period 3 Answer Mark Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks Annnnnnn Pay Period 4 Answer Mark Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks nnnnnnnn D) Now that you have calculated the net pays for each of these employees, calculate the totals for all three for following: Pay Period 3 Answer Mark Total Gross earnings for all 3 employees Total employee portions for CPP /1 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 EHT Total Marks 10 Pay Period 4 Answer Mark Total Gross earnings 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 EHT Total Marks /10 AAAAAHHHH E) Journal Entries for Pay Period 3 and 4 Using the grid below complete the journal entry for the month of February using the amounts you calculated in Section D. Debit Credit Mark Account Wage Expense CPP Expense CPP Payable El Expense El Payable Fed & Prov tax payable Health expense Health payable United Way payable Net Pay Total Total Marks As previously mentioned Roger has decided to leave Majic. His last day worked will be June 26th. He will require a Record of Employment. Complete the boxes below with the correct amounts that should be included in each of the sections. Amount Mark Box Box 10 Box 11 Box 12 Box 14 Box 15 A Box 15 B Box 16 Box 22 Total Marks 18 G) Year End In this question you will need to complete the boxes for a T4 for Marijke using some of the following information. Enter your answers in the grid provided below the copy of the T4. This would be her 2019 T4. 1. Gross earnings = $50700.00 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 Taxes were $8825.33 6. Her donations to a charity were $104.00 7. You will need to calculate her CPP and El deductions using 2019 rates. The 2019 rate for CPP is 5.1% and El is 1.62%. 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 Taxes were $8825.33 6. Her donations to a charity were $104.00 7. You will need to calculate her CPP and El deductions using 2019 rates. The 2019 rate for CPP is 5.1% and El is 1.62%. Employersame-Nom de l'employeur le Canada Revenue 1 Agence du revenu 1 Agency Canada Year Statement of Remuneration Paid Anne Etat de la rmunration paye Employment income-line 101 Income tax deducted-ne 437 Revenus d'emploire 101 mot sur le reven ge 437 22 Province of employment Employee's CPP contributions in 300 El caming Ponce de C onsergio RPC-line 306 54 Employer's account number / Numro de compte de l'employeur Exempt -Emption CPPIOPP E PPIP Err entade Employees. Opp.corbution-Ine 30 OPP pen E RG Media i sel Air a14 / riaailina La premy2 3 Catanduansine 212 1212 Employee's name and address - Nom et adresse de l'employ Lamen -om se mo t ane-Pirom na Pension Mus i ne 208 Employees PPP premium-se ove Gare IM a naIA Other information renseignements (voir au verso) Description Answer Mark Company Year 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 Box 46 Charitable Donations Other Information Code 40 Other Taxable Allowances and Benefits Total Marks 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. 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. They have had an annual remuneration of over $1,000,000 for the past several years therefore their EHT rate is 1.95%. Pay period #1 for those paid bi-weekly started December 22, 2019. The first pay day for these employees is Friday Jan 10, 2020. They have three staff in the Customer Service Department answering questions from clients and the general public. All benefits and deductions are processed on a per pay period basis. 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. Her employer provides 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 AD&D - $50,000.00 at a cost of $0.19 per month per $1000 of coverage 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 3 Answer Mark 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 /10 Annnnnnnn Pay Period 4 Answer Mark 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 /10 nnnnnnnn 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 and receives overtime per ESA. She has not worked any overtime to date. Her employer provides the following: Health and Dental 50% paid by the employer and 50% paid for by Neema at a cost of $469.00 per month Group Term life - $50,000.00 at a cost of $0.45 per month per $1000 of coverage She does not receive AD&D 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 3 Answer Mark 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 nnnnn19 Pay Period 4 Answer Mark 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 Annnnn19 C) Roger started with Majic this year. His first day was January 6, 2020. 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 and receives 4% vacation pay on each pay cheque. He does not receive any benefits. He has not taken any days off nor has he worked any overtime. He received stat pay for the following holidays: Family day he received 7.28 hours of stat Good Friday he received 7.28 hours of stat Victoria Day he received 7.28 hours of stat 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 June 26, 2020 Pay Period 3 Answer Mark Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks Annnnnnn Pay Period 4 Answer Mark Gross Pay Gross taxable income CPP contributions El premiums Federal and Provincial taxes Net pay Employer health tax Total Marks nnnnnnnn D) Now that you have calculated the net pays for each of these employees, calculate the totals for all three for following: Pay Period 3 Answer Mark Total Gross earnings for all 3 employees Total employee portions for CPP /1 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 EHT Total Marks 10 Pay Period 4 Answer Mark Total Gross earnings 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 EHT Total Marks /10 AAAAAHHHH E) Journal Entries for Pay Period 3 and 4 Using the grid below complete the journal entry for the month of February using the amounts you calculated in Section D. Debit Credit Mark Account Wage Expense CPP Expense CPP Payable El Expense El Payable Fed & Prov tax payable Health expense Health payable United Way payable Net Pay Total Total Marks As previously mentioned Roger has decided to leave Majic. His last day worked will be June 26th. He will require a Record of Employment. Complete the boxes below with the correct amounts that should be included in each of the sections. Amount Mark Box Box 10 Box 11 Box 12 Box 14 Box 15 A Box 15 B Box 16 Box 22 Total Marks 18 G) Year End In this question you will need to complete the boxes for a T4 for Marijke using some of the following information. Enter your answers in the grid provided below the copy of the T4. This would be her 2019 T4. 1. Gross earnings = $50700.00 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 Taxes were $8825.33 6. Her donations to a charity were $104.00 7. You will need to calculate her CPP and El deductions using 2019 rates. The 2019 rate for CPP is 5.1% and El is 1.62%. 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 Taxes were $8825.33 6. Her donations to a charity were $104.00 7. You will need to calculate her CPP and El deductions using 2019 rates. The 2019 rate for CPP is 5.1% and El is 1.62%. Employersame-Nom de l'employeur le Canada Revenue 1 Agence du revenu 1 Agency Canada Year Statement of Remuneration Paid Anne Etat de la rmunration paye Employment income-line 101 Income tax deducted-ne 437 Revenus d'emploire 101 mot sur le reven ge 437 22 Province of employment Employee's CPP contributions in 300 El caming Ponce de C onsergio RPC-line 306 54 Employer's account number / Numro de compte de l'employeur Exempt -Emption CPPIOPP E PPIP Err entade Employees. Opp.corbution-Ine 30 OPP pen E RG Media i sel Air a14 / riaailina La premy2 3 Catanduansine 212 1212 Employee's name and address - Nom et adresse de l'employ Lamen -om se mo t ane-Pirom na Pension Mus i ne 208 Employees PPP premium-se ove Gare IM a naIA Other information renseignements (voir au verso) Description Answer Mark Company Year 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 Box 46 Charitable Donations Other Information Code 40 Other Taxable Allowances and Benefits Total Marks