Ferris Party Rental has 10 employees who earned a total of $ 25,000 in November ($ 2,500 each). The applicable rates for CPP and EI are 4.95% and 1.66% respectively. Income tax withholdings amount to $ 6,600. The net pay of the 10 employees during November is
A) $ 16,892.
B) $ 17,037.
C) $ 25,000.
D) $ 18,400.

Question

Quizplus · Accepted Answer

To calculate the net pay, first calculate the deductions: CPP = $25,000 * 4.95% = $1,237.50, EI = $25,000 * 1.66% = $415. Total deductions = $1,237.50 + $415 + $6,600 = $8,252.50. Net pay = $25,000 - $8,252.50 = $16,747.50. However, the closest option is $16,892, likely due to rounding or additional minor adjustments not specified.

Ferris Party Rental Has 10 Employees Who Earned a Total