1.
Determine how much Federal Income Tax an employee would have deducted if they earned $390 in one week and were assigned claim code 4. Use the AW Datasheet for this question.
Solution: Look up weekly income $390 with claim code 4 in the Federal Income Tax table. The deduction is $8.60.
2.
Sheryl earns an hourly wage of $9.30 and works 40 hours per week. She is assigned claim code 1. Calculate her weekly net pay.
Solution: Gross pay = 9.30 × 40 = $372. Net pay = $372 - ($15.08 + $6.44 + $2.40 + $20.55) = $327.53.
3.
Francis earns $789.70 bi-weekly. Determine the amount of EI he had to pay. Use the AW Data File to determine the EI rate. Recall that the EI Premium table refers to a weekly income.
Solution: Weekly income = $789.70 ÷ 2 = $394.85. EI from table = $6.83 weekly. Bi-weekly EI = $6.83 × 2 = $13.66.
4.
Robert works in a manufacturing plant in Fort St. John, British Columbia. He works 32 hours per week, 36 weeks per year and is paid $24.50 per hour. Deductions from gross income are: Federal Income Tax 15%, Provincial Income Tax 5.06%, Employment Insurance 1.73%, Canada Pension Plan 4.95%. Calculate the deduction for his Provincial Income Tax for the entire year.
Solution: Gross pay = 24.50 × 32 × 36 = $28,224. Provincial tax = 28,224 × 0.0506 = $1,428.13.
5.
An employee has a weekly income of $416.15 and is assigned claim code 1. Calculate his total weekly deductions and taxes.
Solution: CPP = $17.27, EI = $7.20, Federal Tax = $26.75, Provincial Tax = $5.90. Total = $57.12.
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