You are the HR Manager of a home improvement and repairs company in Waterloo $($Ontario$)$ region,

Handy Howie$$s $($HH$).$ Recently HH completed a hiring campaign and created a new department,

$$Special Projects$$ The headcount of this department is five. It is led by the Director, Special Projects,

and includes three analysts and an administrative assistant. Compensation details of all employees in

this department areas follows:

Shahid Singh, Director:

$$ Base Salary: $ $172,000$

$$ CPP annual maximum pensionable earnings reached on May $31$

$$ EI annual maximum pensionable earnings reached on May $31$

Mariya Lopez, Analyst:

$$ Base Salary: $ $80,000$

$$ CPP and EI annual maximum pensionable earnings not yet reached.

Gracyn Stiller, Analyst:

$$ Base Salary: $ $83,000$

$$ CPP and EI annual maximum pensionable earnings not yet reached.

Jun Wang, Analyst:

$$ Base Salary: $ $86,000$

$$ CPP annual maximum pensionable earnings reached on August $31$

$$ EI annual maximum pensionable earnings reached on August $31$

Jerry Hopper, Administrative Assistant:

$$ Base Salary: $ $52,000$

$$ CPP and EI annual maximum pensionable earnings not yet reached.

Employees are paid on the $16$th and the last day of the month $(28,29,30,31)$ as the case may be$.$ This

pay is calculated based on the most recent semi$-$monthly period. E$.$g$.,$ for the semi$-$monthly period of

September $1-15,$ employees will be paid on September $16.$

HRM $$ Assignment #$3$

$4|$ P a g e

Payroll trial calculations: $(80$ marks$)$

Today is September $13.$ You will be running the first payroll for this department in two days. Prior to

that, you would like to perform certain payroll and fringe benefit related calculations to use for crosschecking when the main payroll is run.

Towards that end, perform the following calculations:

Required:

All the calculations below pertain to the pay period of September $1-15.$ Round all calculations tothe

nearest dollar. Show all your calculations and do not compare with online calculators. You will receive

partial marks to the extent they have been calculated correctly.

One: $(25$ marks$)$

Calculate gross pay, Federal Taxes and Provincial $($Ontario$)$ taxes that would be deducted from the gross

pay of each employee for the semi$-$monthly period of September $115.$ Use information provided in

Appendix one.

Two: $(35$ marks$)$

Calculate the amount of CPP and EI that would be deducted from the gross pay of each employee for

the bi$-$monthly period of September $115.$ Use information provided in Appendix two and three.

Calculate the employers$$ contribution of CPP and EI which STI has to pay for each employee. Use

information provided in Appendix two and three.

Three: $(10$ marks$)$

Based on your calculations in required one and two above, calculate the net pay for each employee for

the pay period September $115.$ Use information provided in Appendix three.

Four: $(10$ marks$)$

Calculate the total payroll cost for the Corporate Services department for the pay period: September $1-$

$15.$ Use relevant data from calculations performed earlier in required one $$ three.

Five: $(20$ marks$)$

In Appendix four you are provided with a list of ten fringe benefit items. If you were an employee in this

company which five fringe benefits would be most important for you? Select them and calculate their

cost for this pay period. The expenses will be paid for by the company. Alongside each benefit selected,

indicate the reason as to why the choice was made.APPENDIX ONE

Federal Income Tax rates:

Tax Rate Taxable Annual Income

$15\%$ $$49,020,$ and

$20\mathrm{.}5\%$ $$49,021$ up to $$98,040,$ and

$26\%$ $$98,041$ up to $$151,978$ and

$29\%$ $$151,979$ up to $$216,511$ and

$33\%$ $$216,512$ and up

Ontario Tax rates:

Tax Rate Taxable Annual Income

$5\mathrm{.}05\%$ First $$45,142$ and

$9\mathrm{.}15\%$ $$45,143$ up to $$90,287$ and

$11\mathrm{.}16\%$ $$90,288$ up to $$150,000,$ and

$12\mathrm{.}16\%$ $$150,001$ up to $$220,000,$ and

$13\mathrm{.}16\%$ $$220,001$ and up

APPENDIX TWO

CPP CALCULATION CRITERIA

CPP calculation details:

Annual Maximum Pensionable Earnings $$64,900$

Annual Basic Exemption $$3,500\mathrm{.}00$

Annual Maximum Contributory Earnings $$61,400$

CPP Contribution Rate $5\mathrm{.}45\%$

Annual Maximum CPP Employee$/$Employer

Contribution $$3,346\mathrm{.}30$APPENDIX THREE

EI CALCULATION CRITERIA

Employment Insurance $($EI$)-$ Non$-$Qu$$bec Employee

Annual Maximum Insurable Earnings $$60,300$

Employee Contribution Rate $1\mathrm{.}58\%$

Employer Contribution Rate $1\mathrm{.}4$ times employee contribution rate

Annual Maximum Employee Contribution $$952\mathrm{.}74$

Annual Maximum Employer Contribution $$1,333\mathrm{.}84$

APPENDIX FOUR

FRINGE BENEFIT DETAILS

Sl$.$ No Benefit name Cost

$1$ Mediterranean lunch $$25/$ employee, provided twice in this

pay period

$2$ Medical and Dental benefits $$450$ per month, half paid in this pay

period

$3$ Free snacks and beverages $ $9$ per employee per day, $15$ days in this

pay period

$4$ Blue Jays game: in person attendance $$185$ per employee, once in this pay

period

$5$ Amazon Prime subscription $$12$ per month, paid in this pay period

$6$ Cellphone plan $$75$ per employee, paid in this pay period

$7$ Spotify subscription $$14$ per employee, paid in this pay period

Fit $4$ life: fitness subscription $$34$ per