Q:

Calculate Gross Earnings, Gross Taxable Income, CPP, and EI given the information below: Regular Hours: 80.00 Over Time Hours: 10.00 Hourly Rate: $36.00/hour Group Life Insurance Taxable Benefit (pensionable, not insurable): $25.25 Paid Semi-monthly Birthdate: December 1, 1964 YTD CPP: $425.89 YTD EI: $230.67 Use 2022 rates of Manitoba

Accepted Solution

A:
Answer Based on the given information, we can calculate the following: Gross Earnings: The regular pay for 80 hours at an hourly rate of $36.00 is $2,880.00. The overtime pay for 10 hours at a rate of 1.5 times the regular rate is $540.00. Therefore, the gross earnings are $2,880.00 + $540.00 = $3,420.00. Gross Taxable Income: The gross taxable income is the gross earnings minus any non-taxable benefits. In this case, the only non-taxable benefit is the group life insurance taxable benefit of $25.25. Therefore, the gross taxable income is $3,420.00 - $25.25 = $3,394.75. CPP: The CPP contribution rate for 2022 is 5.45% on earnings between $3,500 and $61,600, up to a maximum contribution of $3,166.45. Therefore, the CPP contribution for this pay period is: CPP=min[(Gross\Taxable\Income\times CPP\rate),(Maximum\CPP\contribution-YTD\CPP\contributions)] Substituting the given values, we get: CPP=min[(3,394.75\times 0.0545),(3,166.45-425.89)]\approx 163.54 Therefore, the CPP contribution for this pay period is approximately $163.54. EI: The EI contribution rate for 2022 is 1.58% on earnings up to a maximum of $56,300, up to a maximum contribution of $889.54. Therefore, the EI contribution for this pay period is: EI=min[(Gross\Taxable\Income\times EI\rate),(Maximum\EI\contribution-YTD\EI\contributions)] Substituting the given values, we get: EI=min[(3,394.75\times 0.0158),(889.54-230.67)]\approx 50.68 Therefore, the EI contribution for this pay period is approximately $50.68. Note that the calculations assume that the employee has no other deductions or credits. The actual amounts may differ depending on the specific circumstances of the employee.