Question

1. Review the following situations and determine what earnings & benefits are subject to Canada / Quebec Pension Plan and Employment insurance. After you have determined the pensionable and insurable earnings calculate the CPP/QPP and EI employee deductions. Use rates from 2019 to determine your calculations.

1. Jane works in Ontario and is paid on a bi-weekly basis. She has the following type of earnings & benefits. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.
   1. Regular $1600
   2. Vacation Pay $500
   3. Night Shift Premium $25
   4. Group Life – Employer-paid Taxable to benefit $15

2. Lane works in Quebec and is paid on a semi-monthly basis. He has the following types of earnings & benefits. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

1. Statutory Holiday Pay $120
2. Regular $1200
3. Employer-paid Parking $30

3. Tim works in Nova Scotia and is paid on a monthly basis. He is receiving a special pay (in addition to his 12 pays in the year) for a long service award. He is receiving an amount of $500 cash and he has not received a long service-aware for 5 years. Determine which are pensionable and insurable and then calculate the CPP and EI deductions.

Answer 1

Answerin Page 3 calculated as -2 days wages at the reguler rate, excluding over time for each completed year of employenet or - 5 days wages at the regular rate, excluding over time where the employee's very severance pay is Culculated useing an avarage of the employes corning exclusive of over time for the last four complete weeks of employement. If teaminated with out working notice, the length of employe menit. It terminated for the calculation of severance pay will include the pay in liew of mothe Period For Que bec Jurisdiction:- the Payments towardy termination of employey subt to service includes and the surisd ction length of the following A. Vacation payi. Deductions will include ca app. It legisted amount is paid with final Pay Period ing then reguler clapp rates will applied else samment contribution rate is applied up to the Sonimum clapp contribution for the year and with no car port period exempton.

Page-4 Ansuur in - Employement Insurance (EI) and Quebul Parental Insurane Pulan CQPIP) Premiums Insurable amount mutiplied by EI Premium rat fedurel - Income taxes (Alway boncy tax method) Northweet Territories/ Nunavt paysall taxes Alway annual tax rate Sevarane Pay in Assuming each of the terinated employees have wored for at least 5 years with the employer it is calalated as 2 days wages at the regular rate, excluding overti for each complected yer of employement for es at the reguler rate, excluding over time Scanned with CamScanner

Page 5 Ansuri- where the employey wages verry, severance pay is Culalated useing an avarage of the employees earnings, exclusive of over time, for the last four complete week of employment. * - canned with amScanner