Question

1. david makes $2 730.00/month. calculate his monthly cpp and ei contributions. hint: find his annual gross pay first. 10. stewart is a plumber who earns $83 000.00/year. calculate how much income tax stewart would pay for the year. hint: refer to the income tax table in the lesson.

Explanation:

Problem 9:

Step1: Calculate annual gross pay

$\$2730.00 \times 12 = \$32760.00$

Step2: Calculate annual CPP (2024 rate: 5.95%)

$\$32760.00 \times 0.0595 = \$1949.22$

Step3: Monthly CPP contribution

$\frac{\$1949.22}{12} = \$162.44$

Step4: Calculate annual EI (2024 rate: 1.63%)

$\$32760.00 \times 0.0163 = \$533.99$

Step5: Monthly EI contribution

$\frac{\$533.99}{12} = \$44.50$

Problem 10:

Step1: Use 2024 Canadian tax brackets

First bracket: $\$0-\$53359$ at 15%: $\$53359 \times 0.15 = \$8003.85$

Step2: Calculate second bracket amount

$\$83000 - \$53359 = \$29641$

Step3: Second bracket tax (20% on $\$29641$)

$\$29641 \times 0.20 = \$5928.20$

Step4: Total annual income tax

$\$8003.85 + \$5928.20 = \$13932.05$

Answer:

1. Monthly CPP contribution: $\$162.44$; Monthly EI contribution: $\$44.50$
2. Annual income tax: $\$13932.05$