ABC Company Employee Sue Nami's Income Tax Calculation in 2022

What will be the federal and provincial tax withheld from Sue Nami in each pay period in 2022?

Calculation of Sue Nami's Income Tax in 2022

To calculate Sue Nami's income tax for 2022, we need to follow these steps: Step 1: Determine Gross Income. Sue Nami's gross income is the sum of her net income and her husband's net income. Her gross income = $104,000 + $10,000 = $114,000. Step 2: Determine Taxable Income. The taxable income is calculated based on the federal tax rates. Step 3: Calculate Federal Tax. The federal tax rate for Sue Nami's taxable income will be 15% on the first $49,020 and 20.5% on the remaining amount. Total federal tax = ($49,020 x 0.15) + ($54,980 x 0.205) = $10,200.90. Therefore, Sue Nami's federal tax will be $3,607.10 after deducting the federal tax credit of $13,808.00. Step 4: Calculate Provincial Tax. As per the given data, the provincial tax withheld per pay period will be $193.29. Step 5: Add Provincial and Federal Tax. The total income tax for Sue Nami will be the sum of federal and provincial taxes. Step 6: Divide Income Tax. Divide the total income tax by 24 to determine the tax withheld per pay period. So, the federal tax withheld per pay period for Sue Nami will be $150.30. In summary, the federal tax withheld per pay period for Sue Nami in 2022 will be $150.30, while the provincial tax withheld per pay period will be $193.29.

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