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Question - Sally works for Nikko Enterprises and earns $990 bi-weekly. She has just received a 2% pay increase, effective this current pay period. In addition, Sally is entitled to five weeks' vacation pay, which is paid each pay period.
Each pay, Sally also receives a group medical benefit of $40 (cost is shared 50/50 with her employer) and group term life insurance (benefit is valued at $1,250 per annum). Both quoted plan prices include applicable sales tax.
In addition, the following are other deductions from Sally's pay, each bi-weekly period; $12 for union dues, $28 for a company loan repayment and $7 toward an employee social fund.
Note: Assume income taxes are calculated at a combined rate of 18%.
Required -
a) Determine Sally's Net Pay for one bi-weekly pay period.
b) What is the total amount owing to the CRA for statutory deductions.
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