Question

Hugh works in a Fish Packing Plant at Rocky Bay in British Columbia. He work 30 hours per week, 40 weeks a year, and earns $12.08 per hour. Find his weekly gross salary. Find his weekly net pay (deduct Federal, Provincial Income tax, CPP, EI Premiums).Calculate his yearly net pay and Calculate the percent of his gross income that is deducted each year.

Answer 1

The answer is below

Explanation:

a) Weekly gross salary is the product of the number of hours worked per week and earnings per hour. It is given as:

Weekly gross salary = number of hours worked per week × earnings per hour = 30 hrs / week × $12.08/hr = $362.4

b) Using claim code 2 for the weekly gross salary, Federal tax = $16.05, CPP = $14.61, provisional income tax = $0.6 and EI = $6.27

Total deductions = $16.05 + $14.61 + $0.6 + $6.27 = $37.53

Weekly net pay = Weekly gross salary - Total deductions = $362.4 - $37.53 = $324.87

c) Yearly net pay = weekly net pay × number of weeks in a year = $324.87 × 52 = $16893.24

d) percent of his gross income deducted yearly = weekly deductions / weekly gross income × 100% = 37.53 / 362.4 × 100% = 10.4%