Question 1

What is the amount of the exemption for Canada Pension Plan applied to a semi-monthly pay cycle?

Accepted Answer

D

Question 2

What is the amount of the exemption for Canada Pension Plan applied to a weekly pay cycle?

Accepted Answer

The exemption amount for the Canada Pension Plan (CPP) on a weekly pay cycle is $67.30. This figure is derived from the basic exemption amount of $3,500 annually, divided by the 52 weeks in a year.

Question 3

What is the amount of the exemption for Employment Insurance applied to a semi-monthly pay cycle?

Accepted Answer

E

Question 4

Freida Too is 52 years old and earns $14.00 per hour. This pay schedule she worked 9 hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction?

Accepted Answer

In Manitoba, CPP deductions are based on a percentage of earnings. However, for a single pay period of 9 hours at $14.00 per hour, the earnings are $126.00, which is below the basic exemption amount for CPP contributions. Therefore, the CPP deduction is $0.00.

Question 5

Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much is her CPP deduction?

Accepted Answer

The CPP (Canada Pension Plan) contribution rate for 2023 is 5.95%. Shannon's weekly earnings are $18 x 30 = $540. The CPP deduction is 5.95% of $540, which is $32.13. However, the first $3,500 of annual earnings is exempt from CPP, so the weekly exemption is $67.31 ($3,500/52 weeks). Therefore, the CPP deduction is 5.95% of ($540 - $67.31) = $24.11.

Question 6

Shannon Fiord is 27 years old, earns $18 per hour, worked 30 hours in the pay cycle and is paid weekly in the Province of Ontario. How much must the employer contribute for CPP on her behalf?

Accepted Answer

CPP contribution is 4.95% of earnings up to the Year's Maximum Pensionable Earnings (YMPE) of $64,900. Shannon's earnings for the pay cycle are $18 x 30 = $540. Since this is less than the YMPE, her CPP contribution is $540 x 4.95% = $26.73.

Question 7

Freida Too is 52 years old and earns $16.00 per hour. This pay schedule she worked 9 hours. She is paid weekly in the Province of Manitoba. How much is her EI deduction?

Accepted Answer

In Canada, Employment Insurance (EI) premiums are calculated as a percentage of insurable earnings. As of the knowledge cutoff in 2023, the EI rate for employees in Manitoba is 1.58% of insurable earnings. Freida Too worked 9 hours at $16.00 per hour, making her earnings for the week $144.00. Therefore, her EI deduction would be 1.58% of $144.00, which is approximately $2.27.

Question 8

Freida Too is 52 years old and earns $16.00 per hour. This pay schedule she worked 9 hours. She is paid weekly in the Province of Manitoba. How much must the employer contribute for EI on her behalf?

Accepted Answer

The EI (Employment Insurance) contribution rate for employees in 2023 is 1.58% in Manitoba. Freida's earnings for 9 hours at $16.00 per hour is $144.00. The employer's contribution is 1.4 times the employee's contribution, which is 1.58% of $144.00, resulting in $3.18.

Question 9

John Legglet is 42 years old, earns $4000 per week and is paid semi-monthly in the Province of Ontario. How much is his CPP deduction?

Accepted Answer

The Canada Pension Plan (CPP) deduction is calculated based on an individual's earnings, subject to the yearly maximum pensionable earnings and the basic exemption amount. For 2023, the CPP contribution rate is 5.95% for employees. John's monthly earnings are $8,000 (since he is paid semi-monthly and earns $4,000 per week, making his monthly earnings 4,000*2). The maximum pensionable earnings for 2023 is $66,600, and the basic exemption amount is $3,500 annually. However, since CPP contributions are calculated on each paycheck when paid more frequently than annually, the basic exemption applies proportionately. For semi-monthly pay periods, the basic exemption is $3,500/24 = $145.83 per pay period. Therefore, the calculation for one pay period (semi-monthly) would be: [(4,000 - 145.83) * 5.95%]. This calculation does not directly match any of the provided options, indicating a need for the correct current year's CPP rates and thresholds to accurately calculate the deduction. Given the options and typical calculation methods, the correct answer would involve applying the appropriate rates and thresholds, but without the exact calculation provided, the closest estimate based on the given information and typical CPP deduction calculations would be chosen.

Question 10

If the Canada Pension Plan deduction for an employee is $57.45 for the pay cycle, how much must the employer pay for the same period?

Accepted Answer

Employers must match the Canada Pension Plan (CPP) contributions made by their employees, so if an employee contributes $57.45, the employer must also contribute the same amount, $57.45.

Question 11

If the Employment Insurance deduction for an employee is $57.45 for the pay cycle, how much must the employer pay for the same period?

Accepted Answer

The answer of If the Employment Insurance deduction for an...

Question 12

Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works part time and earns $15.00 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Alberta. How much is her EI deduction?

Accepted Answer

The answer of Sally Shy is 72 years old and...

Question 13

Sally Shy is 72 years old and currently collecting Canada Pension Plan benefits. She works part time and earns $ 15.00 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Alberta. How much is her CPP deduction?

Accepted Answer

Since Sally Shy is 72 years old and already collecting Canada Pension Plan (CPP) benefits, she is not required to make CPP contributions. CPP contributions are not mandatory for individuals over the age of 70, even if they are still working.

Question 14

Freida Too is 52 years old and earns $15.00 per hour. This pay schedule she worked 19 hours. She is paid bi-weekly in the Province of Manitoba. How much is her CPP deduction?

Accepted Answer

The answer of Freida Too is 52 years old and...

Quiz 2: Pensionable, Insurable and Taxable Earnings