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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: $
CPP annual maximum pensionable earnings reached on May
EI annual maximum pensionable earnings reached on May
Mariya Lopez, Analyst:
Base Salary: $
CPP and EI annual maximum pensionable earnings not yet reached.
Gracyn Stiller, Analyst:
Base Salary: $
CPP and EI annual maximum pensionable earnings not yet reached.
Jun Wang, Analyst:
Base Salary: $
CPP annual maximum pensionable earnings reached on August
EI annual maximum pensionable earnings reached on August
Jerry Hopper, Administrative Assistant:
Base Salary: $
CPP and EI annual maximum pensionable earnings not yet reached.
Employees are paid on the th and the last day of the month as the case may be This
pay is calculated based on the most recent semimonthly period. Eg for the semimonthly period of
September employees will be paid on September
HRM Assignment #
P a g e
Payroll trial calculations: marks
Today is September 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 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: marks
Calculate gross pay, Federal Taxes and Provincial Ontario taxes that would be deducted from the gross
pay of each employee for the semimonthly period of September Use information provided in
Appendix one.
Two: marks
Calculate the amount of CPP and EI that would be deducted from the gross pay of each employee for
the bimonthly period of September 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: marks
Based on your calculations in required one and two above, calculate the net pay for each employee for
the pay period September Use information provided in Appendix three.
Four: marks
Calculate the total payroll cost for the Corporate Services department for the pay period: September
Use relevant data from calculations performed earlier in required one three.
Five: 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
$ and
$ up to $ and
$ up to $ and
$ up to $ and
$ and up
Ontario Tax rates:
Tax Rate Taxable Annual Income
First $ and
$ up to $ and
$ up to $ and
$ up to $ and
$ and up
APPENDIX TWO
CPP CALCULATION CRITERIA
CPP calculation details:
Annual Maximum Pensionable Earnings $
Annual Basic Exemption $
Annual Maximum Contributory Earnings $
CPP Contribution Rate
Annual Maximum CPP EmployeeEmployer
Contribution $APPENDIX THREE
EI CALCULATION CRITERIA
Employment Insurance EI NonQubec Employee
Annual Maximum Insurable Earnings $
Employee Contribution Rate
Employer Contribution Rate times employee contribution rate
Annual Maximum Employee Contribution $
Annual Maximum Employer Contribution $
APPENDIX FOUR
FRINGE BENEFIT DETAILS
Sl No Benefit name Cost
Mediterranean lunch $ employee, provided twice in this
pay period
Medical and Dental benefits $ per month, half paid in this pay
period
Free snacks and beverages $ per employee per day, days in this
pay period
Blue Jays game: in person attendance $ per employee, once in this pay
period
Amazon Prime subscription $ per month, paid in this pay period
Cellphone plan $ per employee, paid in this pay period
Spotify subscription $ per employee, paid in this pay period
Fit life: fitness subscription $ per
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