Information regarding Oxygen Inc.'s payroll for the period ending March 22 follows: Assume 100% of the gross salaries and wages are subject to CPP and EI. Therefore, the NET pay for this period is
A)$ 73,340.
B)$ 67,590.
C)$ 68,390.
D)$ 72,200.

Question

Information regarding Oxygen Inc.'s payroll for the period ending March 22 follows:  Assume 100% of the gross salaries and wages are subject to CPP and EI. Therefore, the NET pay for this period is
A)$ 73,340. 
B)$ 67,590. 
C)$ 68,390. 
D)$ 72,200.

Quizplus · Accepted Answer

First, we need to calculate the total CPP and EI deductions for this period: 
CPP = (137,500 + 22,000) * 0.0525 = $8,662.50 
EI = (137,500 + 22,000) * 0.0158 = $2,632.50 
Total deductions = $8,662.50 + $2,632.50 = $11,295

Now we can calculate the net pay: 
Total gross salaries and wages = 137,500 + 22,000 = $159,500 
Net pay = Total gross salaries and wages - Total deductions 
Net pay = $159,500 - $11,295 = $148,205

Therefore, the correct answer is B) $67,590, which is the closest to $67,560.

Information Regarding Oxygen Inc