Question

An employee in Saskatchewan is earning $3,200.00 monthly, receives a retroactive payment of $260.00 and receives a monthly life taxable benefit of $32.00. The employee has a $30.00 deduction for union dues and a $72.00 deduction for contributions to a registered pension plan. What is the employee's net taxable income?

A) $3,130.00
B) $3,358.00
C) $3,390.00
D) $3,450.00

Answer 1

C) $3,390.00

Step-by-step explanation:

To calculate the employee's net taxable income, we need to subtract the deductions from the total income.

Total Income = Monthly Salary + Retroactive Payment + Monthly Life Taxable Benefit

Total Income = $3,200.00 + $260.00 + $32.00

Total Income = $3,492.00

Deductions = Union Dues + Pension Plan Contributions

Deductions = $30.00 + $72.00

Deductions = $102.00

Net Taxable Income = Total Income - Deductions

Net Taxable Income = $3,492.00 - $102.00

Net Taxable Income = $3,390.00

Therefore, the employee's net taxable income is $3,390.00.