A company has 10 employees who earned a total of $30,000 in January ($3,000 each). CPP taxes are 4.95% paid by employees and 4.95% paid by the employer. Income tax withholdings amount to $4,500. The employee EI rate is 1.66% of the total, and the employer EI contribution is 1.4 times the employee portion. The gross pay of the 10 employees during January is
A) $33,209
B) $33,113
C) $30,000
D) $29,190
E) $28,230

Question

Quizplus · Accepted Answer

The gross pay refers to the total amount earned by the employees before any deductions. In this scenario, it's explicitly stated that the 10 employees earned a total of $30,000 in January, making $3,000 each. This amount is before any taxes or contributions (CPP, EI) are applied, thus it is considered their gross pay.

A Company Has 10 Employees Who Earned a Total of $30,000