Payroll Fundamentals

1) The estate of Aisha Gopaul will be receiving a $25,000 death benefit from a Saskatchewan based organisation. Calculate the tax to be withheld from this amount

2) Sean works in Ontario and is provided with a company-owned automobile that was available to him for 224 days. The purchase price of the automobile was $24,900 plus 13% HST. The business kilometers driven were 12000 and the total kilometers driven were 20,000. The employee reimbursement is $0 and Sean has asked that the company use the optional method of calculating his operating cost benefit. Calculate Sean's annual automobile taxable benefit.

3) Dave is on the Board of Directors for the LogRight Company in British Columbia. Calculate the Canada Pension Plan on his director's fee payment of $15,000 which is paid quarterly.

4) Pam drove 25,000 business kilometers this year in her Yukon sales territory and was reimbursed at the government prescribed rates per kilometer. Calculate Pam's total reimbursement.

5) Gino's 2018 total automobile benefit was $4856. This amount included his standby charges of $3256 and operating cost benefit of $1600. Based on this information, calculate Gino's 2019 estimated bi-weekly automobile non-cash taxable benefit.

6) Ravi is an employee in Alberta who earns $850 weekly. He has filed TD1 and TD1AB forms with claim code 2. This pay he is receiving a pay increase of $60 per pay. The increase was effective 4 pay periods ago. Calculate the income tax on the retroactive increase paid on a separate cheque.

7) Asim who is employed in Ontario was provided with a company-leased automobile that was available to him for 25 days before he terminated his employment. The vehicle was leased for $320 per month plus 13% HST. Calculate Asim's standby charge.

8) Elizabeth works in Quebec, earns $33,800 annually and she is paid on a bi-weekly basis.

She contributes $80 to her Registered Pension Plan per pay period and $40 per month in union dues. Elizabeth uses a federal claim code 1 on her TD1 and her provincial deduction code is A on her TP-1015.3-V.

Elizabeth also receives benefits for group term life insurance of two times her annual salary, the premium rate is $1.10 per $1000 of coverage. Calculate Elizabeth's net pay.

9) Nancy earned $225 in overtime this pay period that will be paid on a separate cheque from her regular salary. Calculate Nancy's Canada Pension Plan contribution on the overtime payment.

10) Brad works in Nunavut and earns $2,150 biweekly. Calculate Brad's Nunavut payroll tax.

11) Miguel works in Nunavut and is paid $1163 bi-weekly. He is being terminated due to downsizing and is entitled to 4 weeks of legislated wages in lieu of notice, which will be paid with his final pay. Calculate Miguel's total Nunavut payroll tax.

12) Silvia has worked for Ink's Ltd in Alberta for 7 years. According to Alberta employment standards she must be provided with 5 weeks of legislated wages in lieu of notice. Silvia's bi-weekly salary is $1164. Calculate Silvia's wages in lieu of notice.

13) Gordon earns $500 per week. This pay period he receives a bonus of $700 for meeting customer satisfaction requirements. This is the first bonus paid to him this year. Gordon filed federal and Alberta TD1s claiming code 2. Calculate the total federal and provincial taxes on the bonus paid on a separate cheque.