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Math  /  Data & Statistics

QuestionABC Company showed the following information relating to employees' salaries for the month of October 2021. \begin{tabular}{|l|r|} \hline Gross Wages & $4,580.00\$ 4,580.00 \\ \hline Income Taxes & $916.00\$ 916.00 \\ \hline Canada Pension Plan Contributions & $234.00\$ 234.00 \\ \hline Employment Insurance Contributions & $72.00\$ 72.00 \\ \hline \end{tabular}
Note: The company matches 100\% of employees' CPP and 140\% of employees' EI.
Required a) Calculate the company's total expense.
Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. \begin{tabular}{|l|l|} \hline Gross Wages & $4580.00\$ 4580.00 \\ \hline Canada Pension Plan - company's share & $234.00\$ 234.00 \\ \hline Employment Insurance - company's share & $100.80\$ 100.80 \\ \hline Total Expense & $4914.80\$ 4914.80 \\ \hline \end{tabular} b) Calculate the employee's net pay.
Use the negative sign for values that must be subtracted. \begin{tabular}{|l|l|} \hline Gross Pay & \\ \hline Income Taxes & \\ \hline Canada Pension Plan & \\ \hline Employment Insurance $\$ \\ \hline Net_Pay \\ \hline \end{tabular}

Studdy Solution

STEP 1

1. Gross wages are given as $4,580.00 \$4,580.00 .
2. Employee deductions include income taxes, CPP, and EI.
3. The company matches 100% of CPP and 140% of EI contributions.
4. The total expense includes gross wages and the company's share of CPP and EI.
5. Net pay is calculated by subtracting all deductions from gross wages.

STEP 2

1. Calculate the company's total expense.
2. Calculate the employee's net pay.

STEP 3

Identify the company's share of CPP:
Company’s CPP share=$234.00 \text{Company's CPP share} = \$234.00

STEP 4

Calculate the company's share of EI:
Company’s EI share=1.4×$72.00=$100.80 \text{Company's EI share} = 1.4 \times \$72.00 = \$100.80

STEP 5

Calculate the company's total expense:
Total Expense=Gross Wages+Company’s CPP share+Company’s EI share\text{Total Expense} = \text{Gross Wages} + \text{Company's CPP share} + \text{Company's EI share}
=$4,580.00+$234.00+$100.80=$4,914.80= \$4,580.00 + \$234.00 + \$100.80 = \$4,914.80

STEP 6

Calculate the employee's net pay by subtracting all deductions from the gross pay:
Net Pay=Gross Wages−Income Taxes−CPP−EI\text{Net Pay} = \text{Gross Wages} - \text{Income Taxes} - \text{CPP} - \text{EI}
=$4,580.00−$916.00−$234.00−$72.00=$3,358.00= \$4,580.00 - \$916.00 - \$234.00 - \$72.00 = \$3,358.00
The company's total expense is:
4914.80 \boxed{4914.80}
The employee's net pay is:
3358.00 \boxed{3358.00}

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