Gross Pay - income earned before any deductions

Salary - monthly or annual Hourly - regular and overtime Piecework - earn a set amount per item Commission - percentage of sales

Deductions - money taken directly from your gross pay

Employee Benefits Employment Insurance (EI) Canadian Pension Plan (CPP) Other - union, insurance ( health, life,

dental), … Taxes

Federal Provincial

Net Pay - income after deductions, often call “take-home” pay.

Gross Pay - Deductions = Net Pay

- benefit from which you may collect should you become unemployed

- paid by both the employee at 1.83%, and the employer at 2.562% (1.4 times more)

- in 2011, the maximum annual contribution is $ 839.97.

Yearly EI = 1.78% ( gross yearly pay ) up to $ 786.76

= 0.0178 ( gross yearly pay )

designed to provide income for people who retire, need death benefits, or are severally disabled employees

every working person between the ages of 18 and 70 is required to contribute 4.95% of their annual earnings to the CPP, their employer is required to contribute an equal amount

any worker will not pay into the CPP on their first $ 3500 earned, called the basic exemption

in 2011, the maximum annual contribution is $_______.

Yearly CPP = 4.95% (gross yearly pay - basic exemption) up to $_______

= 0.0495 ( gross yearly pay - 3500)

Any worker will not be taxed federally on their first $_____ earned annually. This is called the basic federal exemption. The remainder of a person’s earnings are taxed on a step-scale starting at 15% to fund national programs. There is no limit upon the federal taxes you could pay.

Federal Tax = 15% ( gross yearly pay – EI – CPP - basic exemption)

in the first bracket

Any worker will not be taxed federally on their first $______ earned annually. This is called the basic provincial exemption. The remainder of a person’s earnings are taxed on a step-scale starting at _____% to fund provincial programs. There is no limit upon the provincial taxes you could pay.

Prov. Tax = 9.1% ( gross yearly pay – EI – CPP - basic exemption)

in the first bracket

Answer Q 8 to 15 p. 67, 68 Answer Q A,B,C p. 70 Answer Q 17,19 p. 70,71 Answer Q 20 p. 71 Answer Q 21,22,24 p. 73 Answer Q 1 to 5 p. 109