Reference no: EM133052801
MGMT8500 Accounting and Financial Management - Conestoga College
HRM - ASSIGNMENT ONE
Objective:
The goal of this assignment is help you develop a basic level of competency with respect to payroll, statutory and fringe benefits.
Overview:
In this assignment you are provided with data relating to statutory and fringe benefits. Using the data, you will perform calculations relating to:
• Deduction of statutory benefits from payroll
• Employer contribution relating to statutory benefits
• Total payroll cost for a department
• Fringe benefit cost for a department
Learning outcome 1: Interpret financial information as it relates to business situations
Learning outcome 2: Determine cost of fringe benefits for a service organization.
Background
You are the HR Manager of an IT service company in Waterloo (Ontario) region, Super-Tech Inc. (STI). Recently STI completed a hiring campaign and created a new department, ‘Corporate Services'.The headcount of this department is five.It is led by the Director, Corporate Services, and includes three analysts and an administrative assistant. Compensation details of all employees in this department are as follows:
Rebecca Fernandez, Director:
• Base Salary: $ 190,000
• CPP annual maximum pensionable earnings reached on May 31
• EI annual maximum pensionable earnings reached on May 31
Sunil Joshi, Analyst:
• Base Salary: $ 75,000
Jessica Cohen, Analyst:
• Base Salary: $ 80,000
Takeshi Mirazawa, Analyst:
• Base Salary: $ 82,000
• CPP annual maximum pensionable earnings reached on July 31
• EI annual maximum pensionable earnings reached on July 31
Claudia Smith, Administrative Assistant:
• Base Salary: $ 54,000
• CPP and EI annual maximum pensionable earnings not yet reached.
• CPP annual basic exemption has been applied already.
Employees are paid on the 16thand the last day of the month (28, 29,30,31) as the case may be. This pay is calculated based on the most recent semi-monthly period. E.g., for the semi-monthly period of September 1-15, employees will be paid on September 16.
Payroll trial calculations:
Today is September 13,2021. You will be running the first payroll for this department in two days. Prior to that, you would like to perform certain payroll and fringe benefit related calculations to use for crosschecking when the main payroll is run.
Towards that end, perform the following calculations:
Required:
All the calculations below pertain to the pay period of September 1-15, 2021. Round all calculations to the nearest dollar. Show all your calculations and do not compare with online calculators. You will receive partial marks to the extent they have been calculated correctly.
One:
Calculate gross pay, Federal Taxes and Provincial (Ontario) taxes that would be deducted from the gross pay of each employee for the semi-monthly period of September 1 - 15. Use information provided in Appendix one.
Two:
Calculate the amount of CPP and EI that would be deducted from the gross pay of each employee for the bi-monthly period of September 1 - 15. Use information provided in Appendix two and three.
Calculate the employers' contribution of CPP and EI which STI has to pay for each employee. Use information provided in Appendix two and three.
Three:
Based on your calculations in required one and two above, calculate the net pay for each employee for the pay period September 1 - 15.Use information provided in Appendix three.
Four:
Calculate the total payroll cost for the Corporate Services department for the pay period: September 1-15. Use relevant data from calculations performed earlier in required one - three.
Five:
Calculate the fringe benefit cost for this department using the data provided in Appendix four.
Attachment:- Accounting and Financial Management.rar