Employee contributions under the Canada Pension Act are 4.95% of pensionable earnings. Pensionable earnings deduct a basic yearly exemption of $3,500 and impose a maximum ceiling of $53,600. Marco earns $1,000 per week. What amount of CPP will be deducted each week from Marco's pay?
A) $49.50
B) $46.17
C) $2,306.70
D) $44.36

Question

Quizplus · Accepted Answer

Marco's weekly earnings are $1,000, which translates to $52,000 annually. After deducting the $3,500 exemption, the pensionable earnings are $48,500. The weekly CPP deduction is 4.95% of $48,500 divided by 52 weeks, which equals approximately $46.17.

Employee Contributions Under the Canada Pension Act Are 4