Arielle works as a nanny and earns $1003.00 biweekly. Each pay period her employer deducts $72.40 for federal tax and $26.52 for provincial tax, and 1.73% of gross income for EI premiums.1) How much does Arielle pay in EI premiums each pay period?2) What is Arielle's net pay?
Question
Arielle works as a nanny and earns 72.40 for federal tax and $26.52 for provincial tax, and 1.73% of gross income for EI premiums.1) How much does Arielle pay in EI premiums each pay period?2) What is Arielle's net pay?
Solution
- To calculate how much Arielle pays in EI premiums each pay period, we need to find 1.73% of her gross income.
Here's how to do it:
Step 1: Convert the percentage to a decimal by dividing it by 100. So, 1.73% becomes 0.0173.
Step 2: Multiply Arielle's gross income by this decimal.
So, 17.35 approximately.
This means Arielle pays about $17.35 in EI premiums each pay period.
- To calculate Arielle's net pay, we need to subtract all the deductions from her gross income.
Here's how to do it:
Step 1: Add up all the deductions. So, 26.52 (provincial tax) + 116.27.
Step 2: Subtract this total from Arielle's gross income.
So, 116.27 = $886.73.
This means Arielle's net pay each pay period is approximately $886.73.
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