Lesson 2: Personal Taxes - Calculating Canada Pension Plan Practice

   Practice Makes Perfect

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Complete the following questions:


  1. John's gross pay is $43 000.00/year.

    1. What is his CPP contribution for one year?

      Hint:
      Step 1: Subtract $3 500.00 from the annual salary.
      Step 2: Calculate the CPP contribution.
      Step 3: Check to see if the annual contribution amount is greater than the maximum CPP contribution of $2 425.50.

    2. How much CPP is deducted from each paycheque if he is paid once a month?

      Hint:
      ______________ ÷ 12 months/year =

  2. Michelle, a carpenter, makes $5020.83/month. Calculate her annual CPP deduction.

    Hint:
    Step 1: Calculate Michelle's annual gross pay.


Check your answers in the detailed solutions found here. Practice is important before you attempt the Chapter 1, Lesson 2 Assignment.



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