Lesley Shalom works in a manufacturing plant in Quebec. She is a weekly paid employee. She earns $25.00 per hour and works 40 hours per pay period. Lesley’s federal TD1 claim code is 1 and her TP-105.3-V deduction code is A. In addition, she has a car allowance (cash taxable benefit) of $110.00 per pay period and a group insurance plan paid by the employer of $40.00 (non-cash taxable benefit) per pay period.
Required: Calculate Lesley’s Net Pay
Step One: Determine Gross Earnings
Step two: Determine Non-cash Taxable Benefits
Step Three: Determine QPP contributions (Take 5.70%)
Step Four: Determine Employment Insurance (EI) premium (Take 1.20%)
Step Five: Determine QPIP premium (Take 0.494%)
Step Six: Determine federal & provincial income tax (Take the hint below)
Step Seven: Determine Northwest Territories (NT)/Nunavut (NU) payroll Tax
Step Eight: Total Deductions
Step Nine: Net Pay
(Hint: For 2020 take federal income tax as $111.20 and Quebec provincial tax as $138.79 – Check it). If you go to the website and use different years and different figures it is accepted.
