Exam 9: Payroll Procedures: the Employees Perspective

Like EI, CPP has a maximum deduction per year.

The employee earnings record

Prepare a general journal payroll entry for Manitoba Market using the following information: Cumulative Earnings Weekly Gross Salary Department Sam Schmidt 35,000 700 Office Marianne Saul 40,000 800 Sales Jay Bachal 55,000 1,000 Office Assume the following: a) CPP 4.95% (exemption of $67.30); EI 1.88% b) Income Tax (including Federal and Provincial Income Tax) is 22% of gross pay c) Each employee pays $10 per week for medical insurance.

Using the following information, compute this week's take home pay and deductions for each employee. Use an Income Tax rate of 15% for Letitia and Paulo; an Income Tax rate of 22% for Steve and Catriona. Employee Earnings YTD Earnings this Week Medical Premiums Letitia 20,000 800 10 Paulo 16,000 400 10 Steve 36,000 900 10 Catriona 53,825 1,075 0

The payroll information for a pay period is found in the payroll register.

The CPP premium rate is currently 3.2% of gross earnings.

Valerie Chandler works 46 hours as a coffee barista and earns $12 per hour. Compute her weekly pay assuming an overtime (more than 40 hours) rate of 1.5.

The taxable earnings column of the payroll register records the tax due.

The higher the TD1 code a person claims, the less income tax is paid.

Derek works 48 hours at a rate of pay of $15 per hour. He receives double pay over 40 hours. What is his gross pay?

Explain the purpose of workers' compensation, and discuss the premium cost to the employer.

After about 15 years of annual rate increases (from 1.8% to the current 4.95%), the CPP rate has remained the same for several years. What is the reason for this?

The formula for computing CPP Premiums to be deducted from an employee's weekly pay is (Gross Pay - 67.30) × 4.95%, subject to maximum premium per year.

Name and describe the special form that must be filled out by the employing company and returned to the federal government when an employee leaves that company's employ.

Which of the following pays no CPP premiums this month?

A TD1 Form

Why would a business decide to use an external company to prepare their payroll cheques and related reports?

A pay period is defined as

Calculate the number of hours of overtime paid to each of the following employees if they are paid overtime for hours over 40 per week or over 8 hours per day. Monday Tuesday Wednesday Thursday Friday Saturday Jim 8 7 9 6 5 3 Janet 12 9 2 4 11 Delbert 7 4 15 14 12 2

Calculate the total wages earned for each employee (assume an overtime rate of time and a half over 40 hours): a) Dave earns $22 per hour and worked 47 hours in one week. b) Jeff earns $18 per hour and worked 41 hours in one week.