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### Income Tax
#### Net Pay Example (5): Calculate the net pay

| Category | Amount | Frequency |
|------------------------|---------|------------------|
| Alberta | [tex]$(1,251.41)$[/tex] | No forms |
| Semi-Monthly Salary | [tex]$1,800 | |
| Subsidized Meal NCTB | $[/tex]10 | Per pay |
| Uniform NCTB | [tex]$100 | Per year prorate |
| Union Dues | $[/tex]7.50 | Per pay |
| Charity | [tex]$10 | Per pay |
| RPP | $[/tex]1.5\% | Insurable earnings |
| RRSP | $1\% | Pensionable earnings |


Sagot :

Let's go through the step-by-step calculation for the net pay based on the given information. We'll be calculating the deductions from the semi-monthly salary and ultimately find the net pay.

1. Semi-Monthly Salary:
- This is given as \[tex]$1,800. 2. Subsidized Meal NCTB: - This deduction is \$[/tex]10 per pay period.

3. Uniform NCTB:
- The uniform cost is \[tex]$100 per year. - Since there are 24 semi-monthly pay periods in a year, we divide \$[/tex]100 by 24.
- Uniform cost per pay period = \[tex]$100 / 24 ≈ \$[/tex]4.167.

4. Union Dues:
- This deduction is \[tex]$7.50 per pay period. 5. Charity: - This deduction is \$[/tex]10 per pay period.

6. RPP (Retirement Pension Plan):
- This is 1.5% of the insurable earnings (semi-monthly salary).
- RPP per pay period = [tex]\(1.5\% \times 1,800\)[/tex].
- RPP per pay period = [tex]\(0.015 \times 1,800 = \$27\)[/tex].

7. RRSP (Registered Retirement Savings Plan):
- This is 1% of the pensionable earnings (semi-monthly salary).
- RRSP per pay period = [tex]\(1\% \times 1,800\)[/tex].
- RRSP per pay period = [tex]\(0.01 \times 1,800 = \$18\)[/tex].

Now, let's sum up all the deductions per pay period:

[tex]\[ \text{Total Deductions per Pay Period} = \text{Subsidized Meal} + \text{Uniform} + \text{Union Dues} + \text{Charity} + \text{RPP} + \text{RRSP} \][/tex]
[tex]\[ \text{Total Deductions per Pay Period} = 10 + 4.167 + 7.50 + 10 + 27 + 18 \][/tex]
[tex]\[ \text{Total Deductions per Pay Period} ≈ 76.667 \][/tex]

8. Net Pay:
- Net pay is calculated by subtracting the total deductions per pay period from the semi-monthly salary.
- Net Pay = Semi-Monthly Salary - Total Deductions per Pay Period.
- Net Pay = 1,800 - 76.667
- Net Pay ≈ 1,723.333

So, the detailed breakdown is as follows:

- Subsidized Meal per Pay: \[tex]$10 - Uniform per Pay: ≈ \$[/tex]4.167
- Union Dues per Pay: \[tex]$7.50 - Charity per Pay: \$[/tex]10
- RPP per Pay: \[tex]$27 - RRSP per Pay: \$[/tex]18
- Total Deductions per Pay: ≈ \[tex]$76.667 - Net Pay: ≈ \$[/tex]1,723.333

This should give you a clear understanding of how the net pay was calculated from the provided semi-monthly salary and various deductions.
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