Brown's Technology has three employees who work on an hourly basis and are paid semi-monthly. The current CPP rate is 5.95%, the current El rate is 1.63%, and the appropriate income tax rate is 20%. Each employee contributes a portion of their pay to the United Way. The employer pays half the amount of the health care premium for the employees, and the employees pay the other half. Assume the employer contributes 100% toward CPP and 140% toward El. Payroll information for the period ending June 3, 2023, is listed below.
Brown's Technology has three employees who work on an hourly basis and are paid semi-monthly. The current CPP rate is 5.95%, the current El rate is 1.63%, and the appropriate income tax rate is 20%. Each employee contributes a portion of their pay to the United Way. The employer pays half the amount of the health care premium for the employees, and the employees pay the other half. Assume the employer contributes 100% toward CPP and 140% toward El. Payroll information for the period ending June 3, 2023, is listed below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kk.257.
Transcribed Image Text:Brown's Technology has three employees who work on an hourly basis and are paid semi-monthly. The
current CPP rate is 5.95%, the current El rate is 1.63%, and the appropriate income tax rate is 20%. Each
employee contributes a portion of their pay to the United Way. The employer pays half the amount of the
health care premium for the employees, and the employees pay the other half. Assume the employer
contributes 100% toward CPP and 140% toward El. Payroll information for the period ending June 3, 2023, is
listed below.
Employee Total Hours Hourly Rate
Walking Out
80.00 $14.50
Running Thru
Skipping Up
83.00 $15.00
$1,014.81
$2,574.19
$3,500.00
74.00 $16.00
United Way Health Care
$8.00
$20.00
$6.00
$10.00
$18.00
$16.00
The CPP Exemption is $3,500.
What is the total amount deducted from the employee's pay for the
period?
$329.25
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