6. An employee, who had been with the company for 6 years, passed away on August 31, 2021. She had been earning a monthly salary of $5,900 and had regular CPP and El deductions taken off this salary on every cheque up to and including her August 31 payment. Calculate: a) Her maximum CPP contribution for the year. b) How much should be refunded to her estate, if any?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. An employee, who had been with the
company for 6 years, passed away on
August 31, 2021. She had been earning a
monthly salary of $5,900 and had regular
CPP and El deductions taken off this salary
on every cheque up to and including her
August 31 payment. Calculate: a) Her
maximum CPP contribution for the year. b)
How much should be refunded to her
estate, if any?
cpp rate 5.45%
cpp annual basic exemption $3,500
maximum insurable earnings $56,300
premium rate 1.58%
Maximum annual employee premium
$889.54
Transcribed Image Text:6. An employee, who had been with the company for 6 years, passed away on August 31, 2021. She had been earning a monthly salary of $5,900 and had regular CPP and El deductions taken off this salary on every cheque up to and including her August 31 payment. Calculate: a) Her maximum CPP contribution for the year. b) How much should be refunded to her estate, if any? cpp rate 5.45% cpp annual basic exemption $3,500 maximum insurable earnings $56,300 premium rate 1.58% Maximum annual employee premium $889.54
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