 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 $

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

 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