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You are the HR Manager of a home improvement and repairs company in Waterloo ( Ontario ) region, Handy Howie s ( HH ) .

You are the HR Manager of a home improvement and repairs company in Waterloo (Ontario) region,
Handy Howies (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 16th 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
20.5% $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
5.05% First $45,142 and
9.15% $45,143 up to $90,287 and
11.16% $90,288 up to $150,000, and
12.16% $150,001 up to $220,000, and
13.16% $220,001 and up
APPENDIX TWO
CPP CALCULATION CRITERIA
CPP calculation details:
Annual Maximum Pensionable Earnings $64,900
Annual Basic Exemption $3,500.00
Annual Maximum Contributory Earnings $61,400
CPP Contribution Rate 5.45%
Annual Maximum CPP Employee/Employer
Contribution $3,346.30APPENDIX THREE
EI CALCULATION CRITERIA
Employment Insurance (EI)- Non-Qubec Employee
Annual Maximum Insurable Earnings $60,300
Employee Contribution Rate 1.58%
Employer Contribution Rate 1.4 times employee contribution rate
Annual Maximum Employee Contribution $952.74
Annual Maximum Employer Contribution $1,333.84
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

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