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Case 1 – Pregnancy & Parental Leave

Case 1 – Pregnancy & Parental Leave
Case 1 – Pregnancy & Parental Leave

Case 1 – Pregnancy & Parental Leave

Jake & Maria Johnston are expecting twins. Maria has been with her employer for 2 years and Jake has been with his employer for 5 years.

They would like to take the maximum allotted time available to be with their new children. They need your help to understand what they are entitled to, the limitations set by the ESA and the compensation provided by EI.

a) Identify what types of leave Maria is entitled to and the qualifying conditions of such leave.

b) Identify what options are available to Jake. Further, outline how much time in total both Maria & Jake can take between them and how much of that time is compensated for in total.

c) If Maria & Jake had adopted children instead, what are their total entitlements in both time and compensation?

Case 2 – Compassionate Care Leave

Stella St. John’s father has been terminally ill for some time. Of late, it is the medical specialist’s opinion that he has only a short time left.

a) Given the fact that Stella’s brother would also like to spend time with his father, outline;

- the number of weeks the siblings are entitled to under ESA
- the number of weeks the siblings are covered under EI
- specific conditions that apply to how they can take the leave

b) What are some general employer responsibilities when it comes to employees taking and returning from leaves of absence?

Case 3 – TD1 & TD1-WS

Jesse James, age 66, receives $35,000/annum in private pension income from Brewers Limited and earns $29,900/year working part-time for Home Depot.

Jesse has decided to defer his CPP income until he reaches the age of 70, so he is presently making CPP contributions through employment.

His wife Stacey, age 55 earned $6,400 this year walking dogs and takes care of their mentally impaired child Melanie, age 27, whom they support in a group home. (Note: although Melanie is considered ‘infirm’ under CRA criteria, she does NOT qualify for a T2201 Disability Certificate).

Melanie earned $8,100 this year, helping out at the corner bakery. She has also been taking courses, part-time at a local college for the past four months, costing $1,200 in tuition fees.

a) Using a TD1 & TD1-WS, determine what Federal Claim Code Jesse James would fall under given the above details.

ENSURE THAT YOU SUBMIT APPLICABLE FORMS

Claim Code =

b) Calculate the statutory deductions that Home Depot would withhold at source, based on a weekly pay cycle.

i) Federal Income Tax = $

ii) CPP = $

iii) EI = $

Case 4 – Earnings & Benefits

Shirley, who is 17 years old, works at Papa’s Pizza Parlour for the summers, but come fall, she goes back to school. She earns minimum wage (use the June 1, 2014 rates), and this summer, regularly worked 25 hours a week for 16 weeks.

Shirley also worked an additional 50 hours throughout the summer to ‘cover’ for other employees shifts, which she has not yet been compensated for. In addition, Shirley had not taken or been paid for any vacation time.

Papa’s policy to part-timers is to pay overtime for any hours worked above 25 per week and the standard 2 week vacation allotment, as per the ESA.

a) Calculate the gross amount of earnings that Papa would have had to pay Shirley, for the past summer that she worked for him.

Detail your answer with appropriate calculations.

Total Gross Earnings = $

b) Due to her outstanding service and for continually exceeding safety standards, Papa decided to give Shirley an ‘award’ in the form of a one year paid subscription to an internet service (valued at $375) for use in her educational needs and a ‘voucher’ for a pizza party, for 10 people at his restaurant (worth $250).

i) Determine what amount is subject to tax, and state if any other source deductions are applicable to these gifts/awards.

ii) If Papa had given Shirley a $375 gift card to Staples for school supplies instead, what CRA ‘rules & deductions’ would apply now?

Your responses should clearly cite CRA policies.

Case 5 – Maxing CPP & EI

Cardinal Co. has 4 employees who are paid on a monthly basis.

Payroll information for one monthly frequency is listed below;

Employee Year-To-Date Salary At
October 31 Payment due on November 30 Payment due on December 31
B. Strata $25,000 $5,000 $2,500
A. Connor $42,500 $5,000 $2,500
P. Singh $44,500 $5,000 $2,500
K. Black $50,000 $5,000 $2,500

Required: Determine CPP & EI deductions for November & December.

Employee
Employment Insurance Canada Pension Plan
November December November December
B. Strata

A. Connor

P. Singh

K. Black

NOTE: marks will not be granted unless ALL appropriate calculations are attached to back up your answers.

Case 6 – Calculating Net Pay

Sally works for Nikko Enterprises and earns $990 bi-weekly. She has just received a 2% pay increase, effective this current pay period. In addition, Sally receives the ESA minimum for vacation pay each pay period.

Each pay, Sally also receives a group medical benefit of $20 (not including sales tax) which is shared 50/50 with her employer. She also receives an annual group term life insurance benefit of $1,250 (sales tax included).

The following is deducted from Sally’s pay, each bi-weekly period; $12 for union dues, $24.95 for a company loan repayment and $2.00 toward an employee social fund.

Assume income taxes are calculated at a combined rate of 19%.

Required: Determine Sally’s Net Pay.

NOTE: marks will be allocated for clearly labeling and providing calculations for EACH STEP (as outlined in Lesson 5)

Case 1 – Pregnancy & Parental Leave

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