Valentina company has 9 employees who earned a total of $27,000 in June ($3,000 each). CPP deductions are 4.95% paid by the employees and 4.95% paid by the employer. Income tax withholdings amount to $4,500. The employee EI rate is 1.66%. The take-home pay of the 9 employees for June is
A) $27,000.00
B) $22,002.90
C) $19.960.50
D) $19,478.40
E) $20,715.30

Question

Quizplus · Accepted Answer

First, calculate the total deductions for CPP and EI from the employees' side:- CPP deduction per employee: $3,000 * 4.95% = $148.50- EI deduction per employee: $3,000 * 1.66% = $49.80Total deductions per employee: $148.50 (CPP) + $49.80 (EI) = $198.30Total deductions for all employees: $198.30 * 9 = $1,784.70Subtract the total CPP and EI deductions and income tax withholdings from the total earnings:$27,000 - $1,784.70 (CPP and EI) - $4,500 (Income Tax) = $20,715.30

Valentina Company Has 9 Employees Who Earned a Total of $27,000