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)$66,690.
B)$67,420.
C)$68,220.
D)$72,420.

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)$66,690. 
B)$67,420. 
C)$68,220. 
D)$72,420.

Quizplus · Accepted Answer

To calculate the NET pay, we need to subtract CPP and EI from gross salaries and wages.

Total gross salaries and wages: 
$94,920 + $45,000 + $12,000 + $9,600 + $4,800 = $166,320

Total CPP: 
$166,320 x 5.10% = $8,484.72

Total EI: 
$166,320 x 1.62% = $2,691.58

NET pay: 
$166,320 - $8,484.72 - $2,691.58 = $155,143.70

Therefore, the best choice is B) $67,420, which is the closest option to $155,143.70.

Information Regarding Oxygen Inc