XYZ Ltd, a British Columbia employer, awards Theresa Ray a $1,950.00 bonus that will be paid out together with her semi-monthly salary of $2,200.00. Terry will not reach the annual CPP maximum contribution with this payment . What is Theresa’s CPP contribution?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
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$3500 and $3499.8 are wrong answers please give a right answer otherwise I will fail

 

XYZ Ltd, a British Columbia employer, awards Theresa Ray a $1,950.00 bonus that will be paid out together with her semi-monthly salary of $2,200.00. Terry will not reach the annual CPP maximum contribution with this payment

. What is Theresa’s CPP contribution?

(Make sure you round to the nearest cent). Hint: The amount of Terry’s gross pensionable/taxable income is required to manually calculate her CPP contributions. Since the bonus is included with regular pay, calculate CPP as you normally would.

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