Chapter 12 Assignment Kristine Laremy has worked for Magnex Corp

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