Question

For the month of March, Joy Inc. recorded gross pay from which employee deductions were made. These deductions included:

a. income tax, CPP, and salaries.
b. salaries, CPP, and employment insurance.
c. income tax, CPP, and employment insurance.
d. union dues, salaries, and CPP.

Answer 1

Correct deductions from an employee's paycheck typically include income tax, CPP, and employment insurance, as reflected in option c of the provided choices.

Step-by-step explanation:

The question pertains to deductions made from employees' gross pay by Joy Inc. during the month of March. Among the options provided, the correct set of deductions typically includes income tax, the Canada Pension Plan (CPP), and employment insurance. Salaries should not be listed as a deduction, since it is the amount employees earn before deductions. Therefore, the correct answer is option c: income tax, CPP, and employment insurance. Payroll taxes often consist of the employee portion and the employer portion, where employees see deductions such as 6.2% for Social Security and 1.45% for Medicare directly taken out of their paychecks. Employers also contribute to these taxes, which can affect the overall compensation package offered to employees.