FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Avon Corporation sells phone cases to public and private companies. They are located at 123 Locus Rd, Markham, ON. They employ 200 full time employees who work in sales, customer service and office support roles.

 

They have had an annual remuneration of over $1,000,000 for the past several years therefore their EHT rate is 1.95%.

 

Pay period #1 started December 27, 2020. All are paid on a bi-weekly basis. All benefits are processed each pay on an as enjoyed basis.

The first pay day for employees is Jan 13, 2021.

 

They have three staff in the Customer Service Department answering questions from clients and the general public. They all work Monday to Friday and do not work statutory holidays but are paid for them.

Neema has been with Avon for 3 years and answers calls specifically from clients.

She earns $18.25 per hour and works 35 hours per week. She also does not work any overtime. She is paid bi-weekly. Her employer provides the following:

·        Health and Dental - at a total cost of $469.00 per month, 50% is paid by the employer and 50% is paid for by Neema

·        Group Term life - $50,000.00 at a cost of $0.45 per month per $1000 of coverage paid for by the employer

·        She does not receive AD&D

 

She has the following deductions:

·        Federal and Provincial taxes - she is claiming basic tax (Claim code 1) plus an additional $5.00 per pay

 

Calculate the following for Neema:

Pay Period 6

 

Gross Pay

Gross taxable income

CPP contributions

EI premiums

Federal and Provincial taxes

Health and Dental Cost

Group term life insurance

Net pay

Employer health tax

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