Carbon Neutral Inc. has four employees who work on an hourly basis and are paid semi-monthly. The current CPP rate is 5.70%, the current EI rate is 1.58%, and the appropriate income tax rate is 15%. Each employee contributes a portion of their pay to the United Way. The employer pays the 50% of the amount of the health care premium for the employees. Assume the employer contributes 100% toward CPP and 140% toward EI. Payroll information for the week ending April 1, 2022, is listed below. Employee Total Hours Hourly Rate United Way Health Care May Bee 72.00 $13.50 $8.00 $16.00 See Eye 77.00 $14.00 $9.00 $22.00 Nose He 80.00 $14.50 $12.00 $24.00 Run Up 82.00 $15.50 $15.00 $24.00 Required: Calculate gross and net pay for each employee. Please remember to account for the CPP annual exemption of $3,500. Round your answers to 2 decimal places. Calculate the total employer costs. Please show all workings
Carbon Neutral Inc. has four employees who work on an hourly basis and are paid semi-monthly. The current CPP rate is 5.70%, the current EI rate is 1.58%, and the appropriate income tax rate is 15%. Each employee contributes a portion of their pay to the United Way. The employer pays the 50% of the amount of the health care premium for the employees. Assume the employer contributes 100% toward CPP and 140% toward EI. Payroll information for the week ending April 1, 2022, is listed below.
|
Employee |
Total Hours |
Hourly Rate |
United Way |
Health Care |
|
May Bee |
72.00 |
$13.50 |
$8.00 |
$16.00 |
|
See Eye |
77.00 |
$14.00 |
$9.00 |
$22.00 |
|
Nose He |
80.00 |
$14.50 |
$12.00 |
$24.00 |
|
Run Up |
82.00 |
$15.50 |
$15.00 |
$24.00 |
Required:
- Calculate gross and net pay for each employee. Please remember to account for the CPP annual exemption of $3,500. Round your answers to 2 decimal places.
- Calculate the total employer costs.
Please show all workings
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