Final answer:
To calculate CPP deductions on a separate cheque, you would typically use the same method as regular wages. Employers and employees usually split payroll taxes, and independent contractors must pay both portions.
Step-by-step explanation:
When calculating CPP deductions on a separate cheque other than regular wages, the method is generally similar to that used for regular wages. This means you would use the same calculation method as you do for regular payroll. It is important to apply the appropriate percentage based on the current CPP rate and not exclude deductions unless instructed by the CRA (Canada Revenue Agency) or if certain exceptions apply.
Payroll taxes, such as those for Social Security and Medicare, are typically split between the employer and employee, each party contributing 6.2% and 1.45% respectively. However, economists suggest that the employer's portion may be indirectly paid by employees through lower wages. For independent contractors, both the employee and employer parts of the payroll taxes must be covered by them.
Therefore, the correct answer to the student's question would generally be (A) Use the same method as regular wages.