Sylvia Chan is a clerk in the shoe department of The Bay in Winnipeg. She earns a
Question:
Sylvia Chan is a clerk in the shoe department of The Bay in Winnipeg. She earns a base monthly salary of $1,875 plus a 7-percent commission on her sales. Through payroll deductions, Chan donates $50 per month to a charitable organization and pays benefits premiums of $49.15. Compute Chan's gross pay and net pay for December, assuming her sales for the month are $50,000. The income tax rate on her earnings is 20 percent, the CPP contribution is 4.95 percent (account for the $3,500 basic annual exemption), and the EI premium rate is 1.83 percent. Chan has not yet reached the CPP or EI maximum earning levels.
Step by Step Answer:
Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood