The following independent examples provide a demonstration on how gross earnings would be calculated: A) Shannon Jackson works for an employer that pays on a weekly pay cycle and she earns the following: O s18 per hour O Overtime paid at 1.5 times for any hours worked more than 8 in a day, and for any hours worked in excess of 40 per week O Work on the midnight shift for which she is entitled to a shift premium of 30 cents per hour O Vacation pay at 4 percent will be accrued and paid at a later date O An annual allowance of $100 for safety shoes, which will be paid on this ay cycle During the pay cycle Shannon works the following hours: Day Mon. Tues. Wed. Thurs. Fri Sat. Sun. Total 8 10 6 8 8 46 00 The following chart shows how Shannon's gross earnings would be calculated: Type of Wage Regular Calculation Amount Total 38 hours at $18 S684.00 Tuesday 2 hours Saturday 6 Hours Overtime Total 8 Hours at $18 X 1.5 216.00 Shift Premium Total 46 hours at 30 cents 13.80 Safety Shoes Gross Earnings 100.00 1.013.80 Note that the full annual amount of safety shoe allowance is paid in this cycle, rather than the allowance being split over each pay in the year. B) Svetlana Tauqir works for an employer which pays on a bi-weekly pay cycle and she earns the following: O Salary of $45,000 per year. O Overtime paid at 1.5 times for any hours worked in excess of 37.5 per week. O Vacation pay at 6 percent accrued and paid at a later date. O A car allowance of $300 per month. O For this pay cycle Svetlana will be paid an expense reimbursement of $647.98 for travel expenses through an accounts payable cheque O Svetlana's supervisor has authorized 10 hours of overtime for this pay cycle The following chart shows how Svetlana's gross eamings would be calculated: Type of Wage Regular Calculation Amount S 1.730.77 45.000/26 pay periods $45.000/(37.5 X 52) = $23.08 regular Rate/hour Overtime 346.20 10X$23.08X1.5 Car Allowance $300 X 12/26 138.46 Not paid thorough payroll 0.00 Expense Gross Earnings S 2.215.43 Note that if the expense reimbursement was made by including it in the payroll then the gross earnings would have been increase by the $647.98. This amount would not impact income taxes, Canada Pension Plan contributions, or employment insurance premiums. 1. Calculate the pay cycle earnings for an employee with an annual salary of $39,000 based on the following cycles: Assuming 52 working weeks or 260 weekdays per year in its calculations. The unadjusted results ignore the holidays and paid vacation days. O Weekly Pays once each week, usually on Fridays. Relatively costly for employers with 52 weeks a year, resulting in higher payroll processing costs, which is the main reason why it is less common than Bi-Weekly or Semi-Monthly. Hours per Week 40, Days per Week 5, Holidays per Year 10, Vacation Days per Year 15. Salary Amount Unadjusted Hollidays and Vacation adjusted 39.000 $830 $750 Using a $18.75 hourly rate with inputs resulting in an average of eight hours worked each day and 260 working days a year (52 weeks multiplied by 5 working days a week), annual unadjusted salary can be calculated as: S18.75 x 8 x (260) = $39.000