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Grade 8

10.10 Deductions and net pay

Worksheet
Deductions and net pay
1

For a gross income of \$57\,000, calculate the net income when:

a

Tax is \$13\,100 and voluntary CPP is \$2700.

b

Tax is \$13\,000, voluntary CPP is \$3600 and health insurance is \$3300.

c

Tax is \$14\,500, health insurance is \$10\,300 and union fees are \$560.

2

Bill earns \$843.50 per week and has the following deductions from his gross wage: tax \$253.05, CPP, \$85, and union fees, \$25.61. Calculate Bill’s net pay.

3

Christa earns \$2563.65 every two weeks and has the following deductions from her gross wage: tax of \$559.17, CPP of \$79, and union fees of \$22.47.

a

Calculate Christa's net pay.

b

Express her income tax as a percentage of her gross pay, correct to one decimal place.

4

If tax is stated as being 15.9 cents in the dollar, what percentage tax is this?

5

Calculate the net weekly wage of a carpenter who must pay 16\% tax on an annual salary of \$38\,080.

6

Brad has a gross weekly wage of \$982.32, and pays \$36.27 for health insurance and \$9.76 for union membership. His net weekly pay is \$781.57.

a

How much tax does Brad pay each week?

b

What percentage of Brad's gross wage is paid in tax? Write your answer correct to one decimal place.

c

What percentage of Brad's gross wage goes towards union fees? Write your answer correct to three decimal places.

7

Calculate the percentage of gross income going to taxes when:

a

Gross income is \$48\,000 and income tax is \$11\,000.

b

Gross income is \$53\,000, income tax is \$13\,000 and voluntary CPP is \$6100.

8

Express net income as a percentage of gross income for each of the following cases:

a

Gross income is \$47\,000 and net income is \$30\,000.

b

Gross income is \$46\,000 and income tax is \$12\,000.

c

Gross income is \$45\,000, income tax is \$13\,000, voluntary CPP is \$2500 and health insurance is \$1200.

9

A train conductor is paid \$21.66 per hour for a 40 hour week, with overtime paid at a time and a half rate.

a

Find her net pay for a week when she worked for 43 hours and had tax deductions of \$109.28.

b

What percentage of her gross pay was paid in tax? Round your answer to the nearest whole number.

10

A self-employed tradesman must put aside 9.5\% of each fortnightly wage towards the Canada Pension Plan, and pay 13\% HST to the government. If he earns \$1267 in a fortnight, calculate his net income after these deductions.

11

A barber earns a gross hourly wage of \$13 per hour during normal working hours, and earns time-and-a-half on weekends. If, for every fortnight, he works 14 normal hours and 13 hours on weekends, calculate:

a

His gross fortnightly wage.

b

His net fortnightly income if he is taxed at a rate of 10\%.

12

Bob received his weekly pay slip. His hourly rate is \$23.21. Complete the third column of the following table:

Hourly RateHoursPayDeductions
\text{Normal}34\text{Tax}\left(25\%\right)\$252.41
\text{Time-and-a-half}5\text{CPP}\$95.92
\text{Double}1\text{Union}\$9.19
\text{Gross Wage}\text{Health Fund}\$20.78
\text{Total Deductions}
\text{Net Wage}
13

Dave receives a weekly gross salary of \$530. If he pays 19\% of this in income tax, 9\% in CPP and \$7.70 in medical insurance, calculate his net weekly pay.

14

Iain is a window cleaner and is paid a gross wage of \$26.34 per hour. He works for 55 hours every fortnight. Each fortnight \$151.72 is deducted as tax instalments as well as \$39.19 for health insurance. Find Iain's net fortnightly pay.

15

Eileen, a retiree, receives annual CPP payments of 60\% of her final year's salary of \$46\,000. Calculate:

a

Her annual CPP income.

b

Her annual disposable (net) CPP income if her income tax is 20\% of her gross income.

16

If 9\% tax is payable on income but not inheritance, how much must be deducted from an income and inheritance that totals \$7350, of which 46\% is inheritance?

17

A labourer is paid a gross annual salary of \$31\,300. Each week, he contributes 8\% of his gross pay to a voluntary CPP fund. His other weekly deductions are \$103.50 tax and \$9.50 for union fees. Calculate:

a

His total weekly deductions.

b

His net weekly income.

18

Irene’s gross fortnightly pay is \$2216.49. Each fortnight, her employer deducts \$390.76 in tax instalments and \$38.57 in voluntary CPP contributions. Find Irene's weekly net pay.

19

Yuri has a gross salary of \$69\,941.69 with an annual income tax deduction of \$15\,759.98, a CPP contribution of 9.5\% of the gross salary and a health insurance contribution of \$92 per week, for 52 weeks. Calculate his net annual income.

20

Amelia’s employer deducts a percentage of her income in tax. The fortnightly amount deposited into Amelia's account is \$1964 and she earns an annual gross income of \$63\,830.00.

a

Calculate her net annual income.

b

Hence, calculate the rate at which she is being taxed. Round your answer to the nearest whole percentage.

21

Employers are legally obliged to pay an amount worth 9.5\% of an employee's income into a CPP fund. If Emma's annual income is \$43\,000 and she chooses to contribute a further 5\% of her income into her CPP fund, calculate:

a

The amount paid into Emma's CPP fund in one year.

b

The amount extra paid into Emma's CPP fund the following year, when she receives a 9\% pay rise.

22

Matt is self-employed and must put aside his own CPP and tax each month. He estimates his income in the first half of the year to be \$57\,600 and for it to grow by 2.8\% in the second half of the year. He is to be taxed at a rate of 30\% and must put aside 9.5\% of his gross annual income into a CPP fund.

a

Calculate his expected gross income for the year.

b

Calculate how much he must deduct from his gross income each month to pay his tax and CPP.

23

During a week over the Christmas period, Neil worked for 32 hours at the normal pay rate and 10 hours at the time-and-a-half rate, and 6 hours at the double time rate. His employer deducted 43\% of his gross income in tax, leaving a net income for that week of \$942.56.

a

Calculate Neil's gross income.

b

Hence, find Neil's normal gross hourly rate.

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