Question

Use the following approximations to estimate earnings.

EI: 1.73% of Gross Income

CPP: 5% for Gross Income over $3,500 per year

Income Tax:

18% on Annual Taxable Income from $0.00 to $30,000

29% on Annual Taxable Income from $30,000 to $60,000

39% on Annual Taxable Income over $60,000

Example: Taxable Income is $45,000 per year; Annual Income Tax is approximately 18% of $30,000 plus 29% of ($45,000−$30,000)=$9,750.00

Leslie, a first year university student, works part-time in a grocery store. She earns
$8.75/h, and works 18hr a week. She is paid every two weeks. Which is
the best estimate of her net earnings for a pay period?

1. 129.15

2. 243.83

3. 258.30

4. 248.85

Answer 1