Payroll, Statutory, and Fringe Benefits: Calculation Assignment

Learning Material

The goal of this assignment is help you develop a basic level of competency with respect to payrollstatutory and fringe benefits Learning material:

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

Grading:
This is an individual assignment worth 10% of your final grade How will the assignment be marked? This assignment will be marked by your Professor and grades posted on eConestoga Course learning outcome applicable for this assignment:
3. Interpret financial information as it relates to business situations Unit learning outcome applicable for this assignment:
3.5 Determine cost of fringe benefits for a service organization.

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: $ 195,000
• CPP annual maximum pensionable earnings reached on May 31
• EI annual maximum pensionable earnings reached on May 31

Sunil Joshi, Analyst:
• Base Salary: $ 85,000
Jessica Cohen, Analyst:
• Base Salary: $ 88,000
• CPP annual maximum pensionable earnings reached on July 31
• EI annual maximum pensionable earnings reached on July 31

Takeshi Mirazawa, Analyst:
• Base Salary: $ 80,000 Claudia Smith, Administrative Assistant:
• Base Salary: $ 51,000
• CPP and EI annual maximum pensionable earnings not yet reached.

Employees are paid on the 16 th 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.

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.

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.
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.

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.

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.

In Appendix four you are provided with a list of ten fringe benefit items. If you were an employee in this company which five fringe benefits would be most important for you? Select them and calculate their cost 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.