Resource: Gross Earnings -> Net Pay Chart . Static information Gather all information O O O o . Pay cycle data O Calculate taxable benefit amounts needed for calculation of pensionable and taxable income Gross Earnings Salaries/wages (OT, shift premium, holiday pay, commissions) . Taxable allowances (lump sum car allowance and general clothing allowance) . Non-taxable allowances (safety shoes) . Non-regular payments (bonus, vacation pay, pay in lieu of notice, severance) Pensionable earnings . Gross Earnings LESS non-taxable allowance LESS termination payments PLUS taxable benefits TOTAL . . Insurable earnings Gross Earnings LESS non-taxable allowance LESS termination payments TOTAL . CPP contribution . Pensionable Earnings LESS pay cycle exemption = Contributory Earnings Multiplied by ____% . . El premium . Insurable Earnings Multiplied by ___% . Gross Taxable Earnings . Gross Earnings LESS non-taxable allowance LESS termination payments PLUS taxable benefits TOTAL . . Net Taxable Earnings . Gross Taxable Earnings LESS RPP LESS RRSP . The following information is for an Ontario employee, Jeanette Duhaney. She is employed as a cashier January 25, 2020, she worked 80 hours at regular rate plus four hours of overtime at time-and-a-half. She is paid 4% vacation pay with each pay cycle based on her earnings, not including allowances. She is paid $10.00 each pay for a clothing allowance to compensate her for wear and cleaning of her clothes. Jeanette's birth date is January 15, 1988, and her SIN is 987-654-321. She has completed a TD1 and is claiming the basic exemption for both federal and provincial purposes. Her regular rate of pay is $16.00 per hour, and she pays $5.00 per pay in union dues. She has authorized the employer to deduct $7.50 per for Jeanette is $12.00 per pay, including taxes. on a bi-weekly basis. Jeanette was hired on January 1, 2018. During the two weeks ending and is paid The following chart demonstrates how the calculation can be done using the step-by-step approach