Fred Balm has agreed to work for the Cadenford Foundation at a total annual salary of $58,000. He is uncertain whether he should be paid bi-weekly or semi-monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must from Freds salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year? taken Complete the table below. (Round your answers to the nearest cent.) Bi-weekly CPP = El = Semi-Monthly CPP = El = Will the choice affect the total El or CPP Fred pays during the year? (Select the correct choice and, If necessary. fill in the answer boxes within your choice.) O A. No. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by O pay periods is approximately equal to the total semi-monthly deductions per pay period multiplied by pay periods. O B. Yos. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is greater than the total semi-monthly deductions per pay period multiplied by pay periods. OC. No. The amount Fred pays is not affected because in each case, the amount of each deduction paid will reach the maximum amount for the deduction. OD. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is less than the total semi-monthly deductions per pay period multiplied by pay periods.
Fred Balm has agreed to work for the Cadenford Foundation at a total annual salary of $58,000. He is uncertain whether he should be paid bi-weekly or semi-monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must from Freds salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year? taken Complete the table below. (Round your answers to the nearest cent.) Bi-weekly CPP = El = Semi-Monthly CPP = El = Will the choice affect the total El or CPP Fred pays during the year? (Select the correct choice and, If necessary. fill in the answer boxes within your choice.) O A. No. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by O pay periods is approximately equal to the total semi-monthly deductions per pay period multiplied by pay periods. O B. Yos. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is greater than the total semi-monthly deductions per pay period multiplied by pay periods. OC. No. The amount Fred pays is not affected because in each case, the amount of each deduction paid will reach the maximum amount for the deduction. OD. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is less than the total semi-monthly deductions per pay period multiplied by pay periods.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:Fred Balm has agreed to work for the Cadenford Foundation at a total annual salary of $58,000. He is uncertain whether he should be paid bi-weekly or semi-monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must be taken
from Fred's salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year?
Complete the table below. (Round your answers to the nearest cent.)
Bi-weekly
CPP =
El =
Semi-Monthly.
CPP =
El =
Will the choice affect the total El or CPP Fred pays during the year?
(Select the correct choice and, if necessary, fill in the answer boxes within your choice.)
O A. No. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is approximately equal to the total semi-monthly deductions per pay period multiplied by pay periods.
O B. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is greater than the total semi-monthly deductions per pay period multiplied by pay periods.
OC. No. The amount Fred pays is not affected because in each case, the amount of each deduction paid will reach the maximum amount for the deduction.
O D. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is less than the total semi-monthly deductions per pay period multiplied by pay periods.
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