Hi, do u guys do exams?

Hi, do u guys do exams?
Answer Key Exercise 4-1 Multiple choice: Select the best answer. The maximum annual pensionable earnings for the Canada Pension Plan for 2020 is: $58,700 $55,900 $57,400 $53,900 The maximum annual contributory earnings for the Canada Pension Plan for 2019 is: $58,700 $55,900 $57,400 $53,900 The maximum annual insurable earnings for Employment Insurance for 2019 is: $55,900 $54,200 $53,100 $51,700 The maximum annual employee contribution to the Canada Pension Plan for 2019 is: $2,898.00 $2,748.90 $856.36 $860.22 The maximum annual employee premium to Employment Insurance for 2020 is: $2,898.00 $2,748.90 $856.36 $860.22 The employee rate for Employment Insurance in 2019 is: 1.88% 1.66% 1.62% 1.58% The annual exemption amount for Canada Pension Plan in 2019 is: $3,500.00 $291.66 $145.83 There is no exemption amount for CPP. The following amounts may be deducted from gross taxable earnings in order to calculate net taxable earnings, except: Charitable donations Employee contributions to RRSP’s Employee contributions RPP’s Union dues Exercise 4-2 Part 1 Tony Smithfield is a salaried employee paid on a monthly basis. His 2019 annual pay is $63,000. Tony had no other benefits or allowances during the year. Required: Calculate Tony’s monthly gross pay in 2019. $5,250.00 Calculate the Canada Pension Plan contribution and Employment Insurance premium that will be deducted from Tony’s pay for each of the following pay periods: Pay Date Gross Earnings CPP EI January 31, 2019 $ 5,250.00 $ 252.87 $ 85.05 February 28, 2019 5,250.00 252.87 85.05 March 31, 2019 5,250.00 252.87 85.05 April 30, 2019 5,250.00 252.87 85.05 May 31, 2019 5,250.00 252.87 85.05 June 30, 2019 5,250.00 252.87 85.05 July 31, 2019 5,250.00 252.87 85.05 August 31, 2019 5,250.00 252.87 85.05 September 30, 2019 5,250.00 252.87 85.05 October 31, 2019 5,250.00 252.87 85.05 November 30, 2019 5,250.00 220.20 9.72 December 31, 2019 5,250.00 Totals $ 63,000.00 $ 2,748.90 $ 860.22 Calculations: CPP: Pensionable earnings = $5,250 January to October 2019: 5,250 – (3,500 / 12) * 5.1% = 252.87November 2019: 2,748.90 – (252.87*11) = 220.20December 2019: There is no CPP deduction in December since the maximum was reached in November 2019. EI: Insurable earnings = $5,250 January to October 2019: 5,250 * 1.62% = 85.05November 2019: 860.22 – (85.05*10) = 9.72December 2019: There are no deductions for EI in December since the maximum was reached in November 2019. Part 2 On January 1, 2020, Tony Smithfield gets a $3,000 raise. He also is given a company cell phone to use. He is allowed to use the cell phone for personal use, and you have calculated that the person portion of the cell phone bill equals $30 per month. Required: Calculate Tony’s monthly gross pay in 2020. $5,500 Calculate the Canada Pension Plan contribution and Employment Insurance premium that will be deducted from Tony’s pay for each of the following pay periods: Pay Date Gross Earnings CPP EI January 31, 2020 $ 5,500.00 $ 275.01 $ 86.90 February 28, 2020 5,500.00 275.01 86.90 March 31, 2020 5,500.00 275.01 86.90 April 30, 2020 5,500.00 275.01 86.90 May 31, 2020 5,500.00 275.01 86.90 June 30, 2020 5,500.00 275.01 86.90 July 31, 2020 5,500.00 275.01 86.90 August 31, 2020 5,500.00 275.01 86.90 September 30, 2020 5,500.00 275.01 86.90 October 31, 2020 5,500.00 275.01 74.26 November 30, 2020 5,500.00 147.90 December 31, 2020 5,500.00 Totals $ 66,000.00 $ 2,898.00 $ 856.36 Calculations: CPP: Pensionable earnings = $5,530 ($5,500 plus $30 non-cash taxable benefit) January to October 2020: 5,530 – (3,500 / 12) * 5.25% = 275.01November 2020: 2,898.00 – (275.01*10) = 147.90December 2020: There is no CPP deduction in December since the maximum was reached in November 2020. EI: Insurable earnings = $5,500 (salary only since there is no EI on non-cash taxable benefits) January to September 2020: 5,500 * 1.58% = 86.90October 2020: 856.36 – (86.90*9) = 74.26November to December 2020: There are no deductions for EI in November and December since the maximum was reached in October 2020. Part 3 On January 1, 2021, Tony Smithfield gets a raise to $72,000 per year. He still has a company cell phone that he is allowed to use for personal use, with the person portion of the cell phone bill equaling $30 per month. Required: Calculate Tony’s monthly gross pay in 2021. $6,000 Calculate the Canada Pension Plan contribution and Employment Insurance premium that will be deducted from Tony’s pay for each of the following pay periods: Pay Date Gross Earnings CPP EI January 31, 2021 $ 6,000.00 $ 312.74 $ 94.80 February 28, 2021 6,000.00 312.74 94.80 March 31, 2021 6,000.00 312.74 94.80 April 30, 2021 6,000.00 312.74 94.80 May 31, 2021 6,000.00 312.74 94.80 June 30, 2021 6,000.00 312.74 94.80 July 31, 2021 6,000.00 312.74 94.80 August 31, 2021 6,000.00 312.74 94.80 September 30, 2021 6,000.00 312.74 94.80 October 31, 2021 6,000.00 312.74 36.34 November 30, 2021 6,000.00 39.05 December 31, 2021 6,000.00 Totals $ 72,000.00 $ 3,166.45 $ 889.54 Calculations: CPP: Pensionable earnings = $6,030 ($6,000 plus $30 non-cash taxable benefit) January to September 2021: 6,030 – (3,500 / 12) * 5.45% = 312.74November 2021: 3,166.45 – (312.74*10) = 39.05December 2021: There is no CPP deduction in December since the maximum was reached in November 2021. EI: Insurable earnings = $6,000 (salary only since there is no EI on non-cash taxable benefits) January to September 2021: 6,000 * 1.58% = 94.80October 2021: 889.54 – (94.80*9) = 36.34November and December 2021: There are no deductions for EI in November and December since the maximum was reached in October 2021. Exercise 4-3 Complete the following payroll register for the weekly pay period ending November 26, 2021. Calculate the CPP and EI manually and use CRA‘s Payroll Deductions Tables (T4032) for Federal and Manitoba Income Taxes, assuming a claim code of 1 for each employee. Note: The earnings to the end of the previous week for each employee was: M. Clark $44,650, J. Green $47,000 and B. Jacobs $62,000 Employee Salary CPP Contribution EI Premium Federal Tax Provincial Tax Total Deductions Net Pay M. Clark 950.00 48.11 15.01 90.35 81.15 234.62 715.38 J. Green 1,000.00 50.83 15.80 99.70 87.15 253.48 746.52 B. Jacobs 1,300.00 159.10 124.15 283.25 1,016.75 Total 3,250.00 98.94 30.81 349.15 292.45 771.35 2,478.65 Calculations: CPP Contributions M. Clark: $950 – (3,500/52) * 5.45% = 48.11 J. Green: $1,000 – (3,500/52) * 5.45% = 50.83 B. Jacobs: Since his earnings to the previous week of $62,000 are greater than the maximum annual pensionable earnings of $61,600, he would have already contributed the maximum of $3,166.45. No further CPP contributions are required in 2021. EI Premiums M. Clark: $950 * 1.58% = 15.01 J. Green: $1,000 * 1.58% = 15.80 B. Jacobs: Since his earnings to the previous week of $62,000 are greater than the maximum annual insurable earnings of $56,300, he would have already contributed the maximum of $889.54. No further EI premiums are required in 2021. Federal Tax and Provincial Tax were determined using the weekly Online Payroll Deductions Tables (T4032) Learn (and at: T4032 Payroll Deductions Tables – Canada.ca https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/t4032-payroll-deductions-tables.html Exercise 4-4 The payroll records for Green House Industries provided the following information for the weekly pay period ending December 3,2021: Employee Daily Time S M T W T F S Pay Rate Taxable benefit: Value of personal use of company cell phone CPP contributions to end of previous week EI premiums to end of previous week Isa McKaw 0 8 8 8 8 8 0 15.00 n/a 1,188.00 448.20 Mike Lace 0 9 8 8 8 6 2 14.00 n/a 1,098.90 436.91 Carl Walt 0 8 8 9 6 0 0 25.00 8.00 2.079.00 747.00 Ryan Zuke 0 6 6 6 6 6 6 30.00 10.00 3,130.50 889.54 Complete the pay register following Manitoba Employment Standards. Assume a 20% income tax rate for all employees. Employee Regular Pay Overtime Pay Gross Earnings CPP contribution EI premium Income taxes Net Pay Isa McKaw 600.00 Nil 600.00 29.03 9.48 120.00 441.49 Mike Lace 560.00 21.00 581.00 28.00 9.18 116.20 427.62 Carl Walt 750.00 37.50 787.50 39.69 12.44 159.10 576.27 Ryan Zuke 1,080.00 Nil 1,080.00 35.95 NIL 218.00 826.05 Total 2,990.00 58.50 3,048.50 132.67 31.10 613.30 2,271.43 Calculations Regular Pay: Isa McKaw: 40 hours x $15.00 Mike Lace: 40 hours x $14.00 (one hour of overtime on Monday) Carl Walt: 30 hours x $25.00 (one hour of overtime on Wednesday) Ryan Zuke: 36 hours x $30.00 CPP Contributions: Isa McKaw: [600 – (3,500/52)] * 5.45% = 29.03 Mike Lace: [581 – (3,500/52)] * 5.45% = 28.00 Carl Walt: [787.50 + 8 – (3,500/52)] *5.45% = 39.69 Ryan Zuke: [1,080 + 10 – (3,500/52)] * 5.45% = 55.74 Ryan has already contributed $3,130.50, so the CPP contribution will be 35.95. (Max of $3,166.45 less $3,130.50) EI Premiums: Isa McKaw: 600 * 1.58% = 9.48 Mike Lace: 581 * 1.58% = 9.18 Carl Walt: 787.5 * 1.58% = 12.44 Ryan Zuke: 1,080 * 1.58% = NIL (already at maximum for the year) Exercise 4-5 Molly Capp works in Manitoba for a company that pays their employees on a weekly basis and she earns the following in 2020: $26.50 per hour. Over-time is paid at 1.5 times for any hours worked more than 8 in a day and for any hours worked in excess of 40 per week. The employer paid $400 for the employee’s professional membership dues. This payment was made directly to the professional organization. During the pay cycle, Molly worked the following hours: Mon. Tues. Wed. Thurs. Fri. Sat. Sun. Total 10 40 Required: Calculate the Pensionable Earnings for the pay cycle. Regular pay (38 hours x $26.50) $1,007.00 Overtime (Tues = 2 x $26.50 x 1.5) 79.50 Plus all other cash amounts – Gross Earnings $1,086.50 Plus non-cash taxable benefits 400.00 Less non-taxable allowances – Pensionable Earnings $1,486.50 Calculate the Canada Pension Plan contribution for the pay cycle. Molly is not near her maximum contribution amount. Pensionable Earnings $1,486.50 Less Basic exemption: $3,500 / 52 = 67.30 Contributory Earnings $1,419.20 x 5.25% Contribution $74.51 Calculate the Insurable Earnings for the pay cycle. Regular pay (38 hours x $26.50) $1,007.00 Overtime (Tues = 2 x $26.50 x 1.5) 79.50 Plus all other cash amounts – Gross Earnings $1,086.50 Less non-taxable allowances – Insurable Earnings $1,086.50 Calculate the Employment Insurance premium for the pay cycle. Molly is not near her maximum contribution amount. Insurable earnings $1,086.50 x 1.58% Premium $17.17 Using the following Income Tax Tables, determine the Provincial and Federal income tax deductions. Molly is a Claim Code 2. Gross taxable income (same as pensionable earnings) $1,486.50 Less: RPP, RRSP, union dues – Net taxable income $1,486.50 Federal tax (from table below) $ 198.15 Provincial tax (from table below) 152.20 Total income tax deductions $ 350.35 Federal tax deductions Effective January 1, 2020 Weekly (52 pay periods a year) Also look up the tax deductions in the provincial table Manitoba provincial tax deductions Effective January 1, 2020 Weekly (52 pay periods a year) Also look up the tax deductions in the federal table Payroll deduction tables for 2020 can also be found here: https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/tx/bsnss/tpcs/pyrll/t4032/2020/t4032-mb-1-52pp-20eng.pdf Exercise 4-6 Elizabeth Willems works in Manitoba for a company that pays their employees on a semi-monthly basis. The following details her earnings information for 2019: Annual salary of $60,000 Elizabeth does not need to use her vehicle for work, but the company provides with a parking spot worth $100 per month. The employer changed their logo, so they provided Elizabeth with a new shirt sporting the updated company logo on April 17, 2019. Elizabeth is expected to wear this shirt to certain corporate events. The shirt cost the company $43.50. On April 19, 2019, the employer provided Elizabeth with a new laptop worth $1,500 in order for her to work more efficiently. Her 2019 TD1 forms show that she has federal personal tax credits totaling $14,000 and Manitoba personal tax credits totaling $12,000. Required: For the pay period ending April 30, 2019: Calculate the Canada Pension Plan contribution for the pay cycle. Regular pay (60,000 / 24) $2,500.00 Plus all other cash amounts – Gross earnings 2,500.00 Plus non-cash taxable benefits (100 x 12 / 24) 50.00 Less non-taxable allowances – Pensionable Earnings $2,550.00 Less: Exemption (3,500/24) 145.83 Contributory earnings 2,404.17 CPP rate for 2019 x 5.10% CPP contribution $ 122.61 Calculate the Employment Insurance premium for the pay cycle. Regular pay (60,000 / 24) $2,500.00 Plus all other cash amounts – Gross earnings 2,500.00 Less non-taxable allowances – Insurable Earnings $2,500.00 EI rate for 2019 x 1.62% EI premium $ 40.50 Determine the Federal Tax and Provincial Tax deductions using the semi-monthly Payroll Deductions Tables (T4032) found at: https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/tx/bsnss/tpcs/pyrll/t4032/2019/t4032-mb-24pp-19eng.pdf Hint: Determine her Federal and Provincial claim codes first. The claim codes can be found in your Module 4-8 course notes, or here: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4008-payroll-deductions-supplementary-tables-previous-years/t4008mb-january-2019/t4008mb-january-general-information.html Gross taxable income (same as pensionable earnings) $2,550.00 Less: RPP, RRSP, union dues – Net taxable income $2,550.00 Federal tax (claim code 2) $ 302.40 Provincial tax (claim code 3) 227.60 Total income tax deductions $ 530.00
Hi, do u guys do exams?
Name: Instructor: Section: Module 4 Online Exercise Solution Payroll & Benefits ACCT-1076 Purpose: Determine an employee’s gross pay, statutory deductions and net pay by calculating the amount using CRA’s payroll tables and using CRA’s Payroll Deductions Online Calculator (PDOC). Required: Research the CPP and EI information on the CRA website in order to complete the following two charts: CPP 2019 2020 2021 Maximum annual pensionable earnings $57,400 $58,700 $61,600 Basic exemption amount $3,500 $3,500 $3,500 Maximum contributory earnings $53,900 $55,200 $58,100 Contribution rate 5.10% 5.25% 5.45% Maximum annual employee contribution $2,748.90 $2,898.00 $3,166.45 Maximum annual employer contribution $2,748.90 $2,898.00 $3,166.45 EI 2019 2020 2021 Maximum annual insurable earnings $53,100 $54,200 $56,300 Rate 1.62% 1.58% 1.58% Maximum annual employee premium $860.22 $856.36 $889.54 Maximum annual employer premium $1,204.31 $1,198.90 $1,245.36 See below for calculations and Payroll Deduction Online Calculator results. NOTE: The income tax amounts using the Payroll Deduction Tables will differ from the Payroll Deduction Online Calculator (PDOC) results. This is because the Payroll Deduction Tables provide the tax amount for a range of taxable income while the PDOC provides an exact calculation. Part 1: Joey Chance Gross Earnings: Salary (52,000/24) $2,166.67 Car allowance 175.00 Total Gross Earnings $2,341.67 Less: Statutory deductions CPP 121.31 EI 37.00 Income tax 404.05 Total taxes 562.36 Less: Other deductions Employee RRSP 100.00 Net pay $1,679.31 Statutory deductions calculations: CPP EI Income tax Gross earnings 2,341.67 2,341.67 2,341.67 Add: Non-cash taxable benefits (cell phone) 30.00 N/A 30.00 Less: Non-taxable allowances Pensionable/Insurable Earnings/Gross taxable income 2,371.67 2,341.67 2,371.67 Less: exemption amount (3,500/24) (145.83) N/A N/A Contributory earnings 2,225.84 Rate 5.45% 1.58% CPP / EI 121.31 37.00 Less: Employee RRSP (100.00) Net taxable income 2,271.67 Federal income tax (look up on payroll deduction tables*) 213.50 Provincial income tax (look up on payroll deduction tables*) 190.55 Total income taxes 404.05 * 2021 semi-monthly Federal and Manitoba Payroll Deduction Tables found here: https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/tx/bsnss/tpcs/pyrll/t4032/2021/t4032- mb-1-24pp-21eng.pdf Joey Chance-(EE)-PDOC-Date paid-2021-04-30.pdf Payroll Deductions Online Calculator Result Employee’s name: Joey Chance Employer’s name: Telecero Communications Ltd. Pay period frequency: Semi-monthly (24 pay periods a year) Date the employee is paid: 2021-04-30 (YYYY-MM-DD) Province of employment: Manitoba Federal amount from TD1: 16,181.01 – 18,554.00 (Claim Code 3) Provincial amount from TD1: 11,629.01 – 13,322.00 (Claim Code 3) Salary or wages income 2,166.67 Taxable benefit paid in cash 175.00 Total cash income 2,341.67 Taxable income for the pay period 2,271.67 Pensionable earnings for the pay period 2,371.67 Insurable earnings for the pay period 2,341.67 Federal tax deduction 213.21 Provincial tax deduction 188.98 Total tax deductions on income 402.19 CPP deductions 121.31 EI deductions 37.00 Amounts deducted at source 100.00 Total deductions 660.50 Net amount 1,681.17 Total benefit paid in cash Cash, insurable for EI 175.00 Taxable benefits (non-cash) Non-cash, not insurable for EI 30.00 Amounts deducted at source Employee contribution to RRSP 100.00 Year-to-Date Amounts Inputted Value Total for this Record Pensionable earnings 13,264.86 15,636.53 CPP contributions 532.14 653.45 Insurable earnings 12,730.38 15,072.05 EI premiums 201.14 238.14 The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory. Created by the Payroll Deductions Online Calculator Page 1 of 1 Saved on 2021-12-14 Part 2: Lilian Worthy Gross Earnings: Regular earnings ($22.00 x 40 hours) $ 880.00 Overtime ($22.00 x 5 hours x 1.5) 165.00 Vacation pay ($880.00 x 4%) 35.20 Total Gross Earnings $1,080.20 Less: Statutory deductions CPP n/a EI 17.07 Income tax 204.30 Total statutory deductions 221.37 Less: Other deductions Union dues 10.00 Net pay $ 848.83 Statutory deductions calculations: CPP EI Income tax Gross earnings 1,080.20 1,080.20 1,080.20 Add: Non-cash taxable benefits (gift) 5.00 N/A 5.00 Less: Non-taxable allowances Pensionable/Insurable Earnings/Gross taxable income 1,085.20 1,080.20 1,085.20 Less: exemption amount (3,500/52) (67.31) N/A N/A Contributory earnings 1,017.89 Rate 5.45% 1.58% CPP / EI Exempt 17.07 Less: Union dues (10.00) Net taxable income 1,075.20 Federal income tax (look up on payroll deduction tables*) 110.30 Provincial income tax (look up on payroll deduction tables*) 94.00 Total income taxes 204.30 * 2021 weekly Federal and Manitoba Payroll Deduction Tables found here: t4032-mb-52pp-21-eng (canada.ca) Lillian Worthy-(EE)-PDOC-Date paid-2021-03-27.pdf Payroll Deductions Online Calculator Result Employee’s name: Lillian Worthy Employer’s name: Lunible Inc Pay period frequency: Weekly (52 pay periods a year) Date the employee is paid: 2021-03-27 (YYYY-MM-DD) Province of employment: Manitoba Federal amount from TD1: 13,808.01 – 16,181.00 (Claim Code 2) Provincial amount from TD1: 9,936.01 – 11,629.00 (Claim Code 2) Salary or wages income 1,045.00 Vacation pay 35.20 Total cash income 1,080.20 Taxable income for the pay period 1,075.20 Pensionable earnings for the pay period 0.00 Insurable earnings for the pay period 1,080.20 Federal tax deduction 119.13 Provincial tax deduction 100.20 Total tax deductions on income 219.33 CPP deductions 0.00 EI deductions 17.07 Amounts deducted at source 10.00 Total deductions 246.40 Net amount 833.80 Taxable benefits (non-cash) Non-cash, not insurable for EI 5.00 Amounts deducted at source Union dues 10.00 Year-to-Date Amounts Inputted Value Total for this Record CPP contributions Exempt Insurable earnings 2,516.50 3,596.70 EI premiums 39.76 56.83 The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory. Part 3: Max Power Gross Earnings: Salary ($2,000 x 12 / 26) $ 923.08 Safety shoe allowance 100.00 Total Gross Earnings $1,023.08 Less: Statutory deductions CPP 43.52 EI 14.58 Income tax 97.65 Total taxes 155.75 Less: Other deductions Employee RRSP – Net pay $ 867.33 Statutory deductions calculations: CPP EI Income tax Gross earnings 1,023.08 1,023.08 1,023.08 Add: Non-cash taxable benefits (parking) 10.00 N/A 10.00 Less: Non-taxable allowances (100.00) (100.00) (100.00) Pensionable/Insurable Earnings/Gross taxable income 933.08 923.08 933.08 Less: exemption amount (3,500/26) (134.62) N/A N/A Contributory earnings 798.46 Rate 5.45% 1.58% CPP / EI 43.52 14.58 Less: Union dues or RRSP’s Net taxable income 933.08 Federal income tax (look up on payroll deduction tables*) 44.15 Provincial income tax (look up on payroll deduction tables*) 53.50 Total income taxes 97.65 * 2021 bi-weekly Federal and Manitoba Payroll Deduction Tables found here: t4032-mb-26pp-21-eng (canada.ca) Note: The Safety Shoe Allowance is a cash non-taxable allowance and must be added manually when using the Payroll Deductions Online Calculator. Max Power-(EE)-PDOC-Date paid-2021-02-27.pdf Payroll Deductions Online Calculator Result Employee’s name: Max Power Employer’s name: Kideo Games Pay period frequency: Biweekly (26 pay periods a year) Date the employee is paid: 2021-02-19 (YYYY-MM-DD) Province of employment: Manitoba Federal amount from TD1: Minimum – 13,808.00 (Claim Code 1) Provincial amount from TD1: Minimum – 9,936.00 (Claim Code 1) Salary or wages income 923.08 Total cash income 923.08 Taxable income for the pay period 933.08 Pensionable earnings for the pay period 0.00 Insurable earnings for the pay period 923.08 Federal tax deduction 44.33 Provincial tax deduction 53.23 Total tax deductions on income 97.56 CPP deductions 43.52 EI deductions 14.58 Total deductions 155.66 Net amount 767.42 Add: safety shoe allowance* 100.00 Net pay 867.42 Year-to-Date Amounts Inputted Value Total for this Record Pensionable earnings 2,296.61 3,229.69 CPP contributions 103.15 146.67 Insurable earnings 2,276.61 3,199.69 EI premiums 35.97 50.55 The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory. * Note: The Safety Shoe Allowance is a cash non-taxable allowance and must be added. manually