Miller Manufacturing has a two-week payroll of $8,200 for its eight employees.Income tax of $1,080 is deducted from the employees' cheques,as well as 4.95% for CPP and 1.6% for EI.Wages deposited in employees' bank accounts would be
A)$6,583.
B)$7,120.
C)$7,663.
D)$8,200.

Question

Quizplus · Accepted Answer

The total deductions include income tax, CPP, and EI. First, calculate the CPP and EI deductions: CPP = 4.95% of $8,200 = $405.90 EI = 1.6% of $8,200 = $131.20 Total deductions = Income tax + CPP + EI = $1,080 + $405.90 + $131.20 = $1,617.10 Wages deposited = Total payroll - Total deductions = $8,200 - $1,617.10 = $6,582.90, which rounds to $6,583.

Miller Manufacturing Has a Two-Week Payroll of $8,200 for Its