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Unit 2 Assignment: Deductions and TaxesPlease read each question carefully and show all of your work for any calculations Part A: Deductions1. Match each term with its correct definition. Gross payA government deduction, goes into a fund so that if a worker loses their job, through no fault of their own, they are eligible to collect unemploymentEIA government deduction, used to pay for federal and provincial servicesNet payEarnings before deductionsIncome taxA government deduction, goes into a pool of money used to pay monthly pensions to people who have retiredCPPEarnings after deductions2. Lisa earns $12.56 per hour, and she works 40 hours per week.a) What is Lisa’s gross pay per week?b) If $89.00 is deducted for CPP, EI and taxes, what is Lisa’s net pay per week?3. Mark earns $577 per week working for a telemarketing company. The deductions from his weekly pay are as follows:EI$9.56CPP$14.78Income Tax$48.19Company Pension Plan$10.25Health Plan $10. 56a) What is Mark’s gross pay? ____________________b) What are his total deductions? ________________c) What is his net pay? _______________________4. Sheena works 42 hours per week. Her net weekly income $464.58 and her deductions are $102.42. Apply what you have learned to determine her hourly rate.5. What does RRSP stand for? Why is it a good thing to have?6. Name one other deduction we talked about in class. Do you think this deduction is beneficial or would you rather NOT pay it?Part B: Living Expenses and Paying Expenses1. List three ESSENTIAL expenses and three NON-ESSENITAL expenses.Essential:Non-essential:2. Emilio works a Starbucks. His net weekly pay is $295 and he is paid every Friday. The chart below shows the money coming into his account and his expenses for the month of November 2014. Calculate his bank balance after each transaction. DateItemPay ($)Expense ($)Balance ($)Nov 1Starting balance201Nov 1Bus pass42Nov 4Cell phone bill48Nov 7Pay295Nov 8Groceries70Nov 14Pay295Nov 15Cable/Internet95Nov 16Groceries75Nov 20Credit Card Purchases578Nov 21Pay295Nov 22Groceries70Nov 28Pay295Nov 30Rent400a) Did Emilio budget wisely for the month? If not, explain how you know.b) What expense could Emilio have cut down on to budget more wisely?Part C: Paying Taxes1. Name three services that our taxes pay for? (can be at any level of government)2. What does HST stand for and what percent is it? 3. List three items that are EXEMPT from HST.4. In your own words, explain what is meant by direct tax and indirect tax?5. The current price of gasoline is $0.968 per litre.a) How much of this price is Federal and Provincial tax?b) What percent of the price per litre is tax?Part D: Calculating Discounts and Sales Tax1. Best Buy is selling a TV for $299.99. What would be the total cost of the TV, including tax?2. Sandra wants to buy a new dress that sells for $79.95.a) How much tax is she going to pay?b) What will the total cost of the dress be?3. Mike found an awesome tennis racket on sale for 40% off. The regular price of the racket is $165.99. a) Calculate the amount of the discount.b) What is the sale price of the racket?4. Max went out for dinner with three other friends. Their total bill came to $89.65. They decided they should tip 20%.a) What is the total amount of the tip?b) What is the new total bill?c) How much should each friend pay?5. Genevieve needs to find a new winter coat. She has a budget of $100 to spend in total, after tax. She found a jacket at The Bay, regular $129.99, on sale for 35% off. Can she afford this jacket? (Don’t forget the tax )6. Tony is going Christmas shopping for his family. He set a budget of $250. Here is a list of items that he bought:Toy train set: Regular $79.99, on sale for 15% offKnitted sweater: Regular $59.99, on sale for 25% offDVD: Regular $11.99, on sale for 10% offBoots: $129.99, not on salea) Calculate the sale price of each item that has a discount.Train setSweaterBookb) Calculate the cost of all of the items, before tax.c) Calculate the total cost of all of the items, after tax.d) Did he stay within his budget? If not, by how much was he over? ................
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