Question
Shannon works for RDA in Ontario and earns an annual salary of $66,000.00, paid monthly. Shannon's employment will be terminated at the end of this
Shannon works for RDA in Ontario and earns an annual salary of $66,000.00, paid monthly. Shannon's employment will be terminated at the end of this pay period. She is entitled to 4% vacation pay on her vacationable earnings of $68,000.00 and 3 weeks' wages in lieu of notice. Her vacation-pay and wages in lieu of notice will be paid together on a separate payment from her regular pay. Shannon's federal and provincial TD1 claim codes are 1. She will not reach the Canada Pension Plan or Employment Insurance annual maximums this pay period. Calculate the employee's net pay on the separate payment. Use 2020 rates. Use the table titled "Ontario - Effective January 1, 2020 New Federal Basic Personal Amount". Hint: Use the bonus method when calculating income taxes
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