Question

Franny works 80 hours in the bi-weekly pay period and earns

$40.00 an hour. He also receives a $100.00 car allowance each pay.
What is employer EI contribution if EI rate is 1.58%

Answer 1

Franny's employer's EI contribution is $50.56 for the bi-weekly pay period, based on 80 hours of work at $40.00 an hour and the EI rate of 1.58%.

Step-by-step explanation:

Franny's employer's contribution to Employment Insurance (EI) can be calculated by multiplying Franny's earnings for the bi-weekly pay period by the EI rate of 1.58%. However, it's important to note that the car allowance is typically not insurable for EI purposes. So we will only calculate the EI contribution based on the earnings from work hours.

Franny's employer's EI contribution for the bi-weekly period is $50.56 (calculated as $40.00 per hour * 80 hours * 1.58%).

To calculate the EI contribution, we need to know the total earnings from work. Franny works 80 hours bi-weekly and earns $40.00 an hour, which equates to $3,200 for the bi-weekly pay period (80 hours * $40.00/hour). We then apply the EI rate to these earnings:

$3,200 (earnings) * 1.58% (EI rate) = $50.56

This is the amount that Franny's employer will contribute to EI on Franny's behalf for the pay period.