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 Net Taxable Earnings. Explain what deductions are allowed.
Net Taxable Earnings are Gross Taxable Earnings less employee contributions to a Registered Pension Plan, a Registered Retirement Savings Plan, union dues, amounts claimed on the TD1 for living in a prescribed zone and any other amounts authorized in writing by the Canada Revenue Agency.