HUMR- 1007 Payroll and Taxable Benefits

Case Study 1 (Version 2)

Don Bedson is a welder who works for the Iron Strong Company in Winnipeg. Don is paid on a hourly basis at $19.45 per hour and normally works Monday to Friday, at 8 hours per day. During vacation time or peak periods, Don may work longer hours, and any hours in excess of 8 per day or 40 per week, he is paid at one-and-one-half times his regular rate of pay.

Don is paid on weekly basis every Monday, following his pay week, which runs from Sunday to Saturday.

Don has been working with the company since Aug 27, 2015.

Don has a low interest loan with the company, which has a taxable benefit component of $6.38 for each weekly pay and a loan deduction of $68.00 each pay.

Iron Strong is a unionized company and all employees pay union dues on each pay which are equal to their current rate per hour.

Iron Strong also pays life insurance coverage for all employees and the taxable benefit is added on to each weekly pay. For Don, his life insurance premium is $15.00 per month.

Don also pays $50.00 per pay to a group RRSP.

Calculate the net pay for each of the following weeks showing all deductions. Don is claiming basic exemptions on his TD1 forms and is claim code #1.

This is his first pay of the year for 2022.

Don’s hours worked:

Week	Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday
One	0	8	8	11	8	8	2
Two	0	8	8	8	8	8	0

For Week One:

Please show your work using 2022 rates for CPP, EI and Income Taxes

Regular hours

Overtime Hours

Total Gross Pay_ __________________________________

Tax Ben

Tax Ben ______________________________________

Gross Taxable________________________________

Net Taxable______________________________

CPP________________________________

EI______________________________

FED TAX________________________________

PROV TAX_________________________________

Total deductions

Net Pay____________________________

For Week Two:

Regular hours

Overtime Hours

Total Gross Pay

Tax Ben __________________________________________

Tax Ben __________________________________

Gross Taxable_________________________________

Net Taxable

CPP

EI

FED TAX_______________________________

PROV TAX______________________________

Total Deductions:_________________________________________________

Net Pay______________________________