Answer:
a) What is her GROSS pay for a week? 1,400
b) What is her GROSS pay for a year? 67,200
c) What are her TOTAL DEDUCTIONS for a week? 351.39
d) What is her NET pay for a week? 1,048.61
e) What is her NET pay for a year? 50,333.28
f) What does she pay in Income Tax per YEAR? 13,535.52
g) What does she pay in CPP contributions per YEAR? 2,537.28
h) What does she pay in El contributions per YEAR? 793.92
i) What percentage of her yearly Gross Pay is the yearly Income Tax she pays? 20.14%
Explanation:
GROSS
- without tax or other contributions having been deducted
NET
- Net pay means take-home pay or the amount employees earn after all payroll deductions are subtracted from their gross pay.
There are 4 weeks in a month, 52 weeks in a year.
a) What is her GROSS pay for a week? 1,400
- The amount of money she makes per hour × the amount of hours she works per week
- 35 × 40
- 1,400
b) What is her GROSS pay for a year? 67,200
- The amount of money she earns in a month × 12
- (The amount of money she makes per week × 4) × 12
- (1,400 × 4) × 12
- 5600 × 12
- 67,200
c) What are her TOTAL DEDUCTIONS for a week? 351.39
- Income Tax + CPP + El
- 281.99 + 52.86 + 16.54
- 334.85 + 16.54
- 351.39
d) What is her NET pay for a week? 1,048.61
- Her gross pay for a week - Her total deductions for a week
- 1,400 - 351.39
- 1,048.61
e) What is her NET pay for a year? 50,333.28
- Her gross pay for a year - Her total deductions for a year
- Her gross pay for a year - ([Her total deductions for a week × 4] × 12)
- Her gross pay for a year - ([351.39 × 4] × 12)
- 67,200 - ([351.39 × 4] × 12)
- 67,200 - (1,405.56 × 12)
- 67,200 - 16,866.72
- 50,333.28
f) What does she pay in Income Tax per YEAR? 13,535.52
- Income tax per month × 12
- (Income tax per week × 4) × 12
- (281.99 × 4) × 12
- 1,127.96 × 12
- 13,535.52
g) What does she pay in CPP contributions per YEAR? 2,537.28
- CPP per month × 12
- (CPP per week × 4) × 12
- (52.86 × 4) × 12
- 211.44 × 12
- 2,537.28
h) What does she pay in El contributions per YEAR? 793.92
- El per month × 12
- (El per week × 4) × 12
- (16.54 × 4) × 12
- 66.16 × 12
- 793.92
i) What percentage of her yearly Gross Pay is the yearly Income Tax she pays? 20.14%
- (Her yearly Income Tax ÷ Her yearly Gross Pay) × 100
- (13,535.52 ÷ 67,200) × 100
- 0.20142... × 100
- 20.142...% or 20.14%