You are the HR Manager of an IT service company in Waterloo (Ontario) region, Super-Tech Inc. (STI). Recently STI completed a hiring campaign and created a new department, Corporate Services. The headcount of this department is five. It is led by the Director, Corporate Services, and includes three analysts and an administrative assistant. Compensation details of all employees in this department are as follows:

Rebecca Fernandez, Director:

Base Salary: $ 190,000

CPP annual maximum pensionable earnings reached on May 31

EI annual maximum pensionable earnings reached on May 31

Sunil Joshi, Analyst:

Base Salary: $ 75,000

Jessica Cohen, Analyst:

Base Salary: $ 80,000

Takeshi Mirazawa, Analyst:

Base Salary: $ 82,000

CPP annual maximum pensionable earnings reached on July 31

EI annual maximum pensionable earnings reached on July 31

Claudia Smith, Administrative Assistant:

Base Salary: $ 54,000

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.

Payroll trial calculations: (80 marks)

Today is September 13,2021. 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, 2021. Round all calculations to the 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: (20 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 1 15. Use information provided in Appendix one.

Two: (30 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 1 15. 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 1 15. Use information provided in Appendix three.

Four: (5 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: (15 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.

Deliverables:

You will complete your work on the Excel template and upload the same to eConestoga.

Delivery:

Upload your response to the assignment folder in eConestoga.

Your Professor will advise you as to the due date of this assignment.

APPENDIX ONE

Federal Income Tax rates:

Federal Tax rates for 2021 Tax year:

Tax

Rate

Taxable Annual Income

15%

$49,020

20.5%

$49,021 up to $98,040

26%

$98,041 up to $151,978

29%

$151,979 up to $216,511

33%

$216,512 and up

Ontario Tax Rates for 2021 Tax year:

Tax

Rate

Taxable Annual Income

5.05%

First $45,142, and

9.15%

Over $45,142 up to $90,287, and

11.16%

Over $90,287 up to $150,000, and

12.16%

Over $150,000 up to $220,000, and

13.16%

Over $220,00 and up

APPENDIX TWO

CPP CALCULATION CRITERIA

CPP calculation details:

Annual Maximum Pensionable Earnings

$61,600.00

Annual Basic Exemption

$3,500.00

Annual Maximum Contributory Earnings

$58,100.00

CPP Contribution Rate

5.45%

Annual Maximum CPP Employee/Employer

Contribution

$3,166.45

APPENDIX THREE

EI CALCULATION CRITERIA

Employment Insurance (EI) - Non-Qubec Employee

Annual Maximum Insurable Earnings

$56,300.00

Employee Contribution Rate

1.58%

Employer Contribution Rate

2.21%

Annual Maximum Employee Contribution

$889.54

Annual Maximum Employer Contribution

$1,245.36

APPENDIX FOUR

FRINGE BENEFIT DETAILS

Sl. No

Benefit name

Cost

1

Classic Italian Pizza lunch

$25 / employee, provided twice in this

pay period

2

Medical and Dental benefits

$450 per month, paid in this pay period

3

Free snacks and beverages

$ 8 per employee per day, 15 days in this

pay period

4

Raptors game: in person attendance

$150 per employee, once in this pay

period

5

Crave TV subscription

$10 per month, paid in this pay period

6

Cellphone plan

$60 per employee, paid in this pay period

7

Sirius XM subscription

$15 per employee, paid in this pay period

8

Movati fitness subscription

$40 per month, paid half in this pay period

9

Half day off on birthday

$120, once in this pay period

10

Professional development seminar

$250, once in this pay period

APPENDIX THREE EI CALCULATION CRITERIA Employment Insurance (EI) - Non-Qubec Employee Annual Maximum Insurable Earnings $56,300.00 Employee Contribution Rate 1.58% Employer Contribution Rate 2.21% Annual Maximum Employee Contribution $889.54 Annual Maximum Employer Contribution $1,245.36 APPENDIX FOUR FRINGE BENEFIT DETAILS SI. No Benefit name Classic Italian Pizza lunch 1 2. 3 Medical and Dental benefits Free snacks and beverages Cost $25 / employee, provided twice in this pay period $450 per month, paid in this pay period $ 8 per employee per day, 15 days in this pay period $150 per employee, once in this pay period $10 per month, paid in this pay period 4 Raptors game: in person attendance 5 Crave TV subscription 6 Cellphone plan $60 per employee, paid in this pay period 7 Sirius XM subscription $15 per employee, paid in this pay period 8 Movati fitness subscription $40 per month, paid half in this pay period $120, once in this pay period 9 Half day off on birthday 10 Professional development seminar $250, once in this pay period