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Chapter 12 Assignment Kristine Laremy has worked for Magnex Corp

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Chapter 12 Assignment

Kristine Laremy has worked for Magnex Corp. in Alberta since she turned 21, in August, 2000.  Magnex Corp. does not have a pension plan for its employees.  Her employment is terminated on October 15, 2019, due to company restructuring.  The following amounts are relevant to Kristine’s final pay:

 

            Regular semi-monthly salary:                                     $3,000.00 (unchanged all year)

            Taxable Car Allowance per pay:                                      100.00

            Group term life insurance benefit per pay:                  $     23.40

            Vacation pay owing:                                                    $5,185.38

            Wages in lieu of notice:                                                 8 weeks

            Retiring allowance:                                                     $40,000.00 (ignore for parts a through k)

 

Kristine has federal and provincial claim codes of 2.  Her regular salary, vacation pay and wages in lieu of notice will be paid together; her retiring allowance will be paid separately.  Calculate Kristine’s final payments. Marks will be provided for correctly calculating:

 

1. Gross Earnings
2. GPTI
3. GIE
4. NTI
5. CPP
6. EI
7. IT  salary (f)
8. IT  salary (p)
1. IT vac+WIL (f)
10. IT vac+WIL (p)
11. Net pay (final paycheque)

 

50. Tax on retiring allowance

1000. Net pay (retiring allowance)

 

1 mark each --- 13 marks available

 

 

Note 1: Treat the vacation pay and wages-in-lieu payments as a single lump-sum amount, not 2 separate ‘bonus’ payments.

 

Note 2: Remember to convert the wages-in-lieu amount ---- 8 weeks is not 4 semi-monthly periods.

This assignment is due no later than Friday, Nov. 20, by 4 p.m. Late submissions not accepted