An Employee Earns $55,000 Per Year and Is Paid on a Semi-Monthly

Essay

An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.
-Calculate the Gross Taxable Earnings.
Gross Taxable earnings is the same as Pensionable Earnings but adding back in any payments related to severance and retiring allowances. As there are no severance or retiring allowances for this employee, the Gross Taxable Earnings are the same as the Pensionable Earnings.