payroll compliance

Net Pay Calculations

Lesley Shalom works in a manufacturing plant in Quebec. She is a weekly paid employee. She earns $25.00 per hour and works 40 hours per pay period. Lesleys federal TD1 claim code is 1 and her TP-105.3-V deduction code is A. In addition, she has a car allowance (cash taxable benefit) of $110.00 per pay period and a group insurance plan paid by the employer of $40.00 (non- cash taxable benefit) per pay period.

Required: Calculate Lesleys Net Pay

Step One: Determine Gross Earnings Step two: Determine Non-cash Taxable Benefits Step Three: Determine QPP contributions (Take 5.325%) Step Four: Determine Employment Insurance (EI) premium (Take 1.52%) Step Five: Determine QPIP premium (Take 0.548%) Step Six: Determine federal & provincial income tax ( Take the hint below) Step Seven: Determine Northwest Territories (NT)/Nunavut (NU) payroll Tax Step Eight: Total Deductions Step Nine: Net Pay (Hint: For 2020 take federal income tax as $111.20 and Quebec provincial tax as $138.79). If you go to the website and find a different figures it is accepted.