You are the HR Manager of an IT service company in Waterloo (Ontario) region, Tech Stop Inc. (TSI). Recently TSI 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:
|
Alice Senna, Director |
Valentina Lula, Analyst |
Theo Bundchen, Analyst |
Pedro Di Maria, Analyst |
Julia Chavez, Admin Assistant |
Annual Salary |
$ 223,000 |
$ 92,000 |
$ 86,000 |
$ 75,000 |
$ 58,000 |
Employees are paid on the 16th and 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. In two days, you will be running the payroll for the first half of September. In the meantime, you would like to perform certain payroll and fringe benefit related calculations to use for cross-checking 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, 2022. 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 for each employee. Use the 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 assignment.
Five:
In Appendix four you are provided with a list of ten fringe benefit items that the company is willing to provide to employees. From the list, select five fringe benefits that you believe would provide the best rates of employee attraction, retention, and engagement and calculate the additional cost to the company for this pay period. The expenses will be paid for by the company. Alongside each benefit selected,indicate the reason as to why the choice was made.
Deliverables:
- Complete your work on the Excel template provided
- Upload your response to the assignment folder in
- Your professor will advise you as to the due date of this
APPENDIX ONE
Federal Income Tax rates:
Tax Bracket |
Tax Rate |
Taxable Annual Income |
1 |
15.0% |
0 To $55,867 |
2 |
20.5% |
$55,867 up to $111,7333, and |
3 |
26.0% |
$111,733 up to $173,205, and |
4 |
29.0% |
$173,205 up to $246,752, and |
5 |
33.0% |
$246,752 and up |
Provincial Income Tax rates:
Tax Bracket |
Tax Rate |
Taxable Annual Income |
1 |
5.05% |
First $51,446, and |
2 |
9.15% |
Over $51,446 up to $102,849 and |
3 |
11.16% |
Over $102,849 up to $150,000, and |
4 |
12.16% |
Over $150,00 up to $220,000, and |
5 |
13.16% |
Over $220,000 and up |
APPENDIX TWO
CPP CALCULATION CRITERIA
Data |
|
CPP employee |
5.95% |
CPP employer |
5.95% |
Maximum Annual Pensionable Earnings |
68,500 |
Basic exemption – Annual |
3,500 |
Annual pay periods |
24 |
Pay Period Exemption |
145.83 |
APPENDIX THREE
EI CALCULATION CRITERIA
Data |
|
EI employee |
1.66% |
EI employer |
2.32% |
Annual pay periods |
24 |
Max Annual Insurable Earnings |
63,200 |
APPENDIX FOUR
FRINGE BENEFIT DETAILS
Sl. No |
Benefit name |
Cost |
1 |
Mediterranean lunch |
$25 / employee, provided twice in this pay period |
2 |
Medical and Dental benefits |
$450 per month, half paid in this pay period |
3 |
Free snacks and beverages |
$ 9 per employee per day, 15 days in this pay period |
4 |
Blue Jays game: in person attendance |
$185 per employee, once in this pay period |
5 |
Amazon Prime subscription |
$12 per month, paid in this pay period |
6 |
Cellphone plan |
$75 per employee, paid in this pay period |
7 |
Spotify subscription |
$14 per employee, paid in this pay period |
8 |
Fit 4 life: fitness subscription |
$34 per month, paid half in this pay period |
9 |
Half day off on birthday |
$125, once in this pay period |
10 |
Professional development seminar |
$260, once in this pay period |