Calculate Sharon pension adjustment

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Reference no: EM132794530

Question - Judy Jo works for Kalish Manufacturing Company in St. Jean, Québec. Judy earns $29,900.00 annually and is paid on a weekly basis. His federal TD1 claim code is 2 and his TP-1015.3-V deduction code is B. Judy is a unionized employee and pays 3% of his base salary in union dues every pay period. Kalish provides their employees with life insurance coverage of twice annual salary and pays 100% of the cost of the coverage. The life insurance premium rate is $0.75 per $1,000.00 of coverage per month; this rate does not include the 9% tax on insurance premiums. The employees pay 100% of the cost of their health and dental coverage; Judy's premiums for family health coverage are $52.00 per month and his family dental premiums are $91.00 per month. The health and dental premium costs are inclusive of the 9% tax on insurance premiums. Both the employer's and the employee's insurance costs are calculated on a pay period basis. Judy also voluntarily participates in a social club which costs $104.00 a year, deducted on a pay period basis.

Calculate Judy's Net Pay:

1. Harvinder's employer provides her with a defined benefit pension plan that earns her a flat pension benefit amount of $51.00 per month of service. She worked all of 2020. Calculate her pension adjustment for 2020.

2. Calculate the total remittance due to the Canada Revenue Agency where the total employee contributions to Canada Pension Plan were $15,200.00, Employment Insurance premiums were $6,080.00, federal taxes were $23,450.00 and provincial taxes (non-Québec employees) were $17,600.00. The employer has a reduced rate for employer contributions to Employment Insurance of 1.269.

3. The following amounts were withheld from employees' pay cheques during the current statutory deduction remittance period: Canada Pension Plan contributions of $4,590.00, Employment Insurance premiums of $1,730.00, federal income tax of $14,840.00 and Saskatchewan provincial income tax of $11,760.00. This employer does not qualify for a reduced Employment Insurance rate. Calculate the total amount that must be remitted to the Canada Revenue Agency for the current remittance period.

4. Sharon contributes 5% of her annual earnings of $40,000.00 to her defined contribution pension plan. Her employer matches her contributions. Calculate Sharon's pension adjustment.

Reference no: EM132794530

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