1. Creating a Budget Mr. Machula

2. Creating a budget Gross Monthly Income Income Tax EI and CPP Deductions Total Monthly Expenses Preliminary Monthly Balance Unexpected Expenses

3. Gross Monthly Income Annual Salary divided by 12. $74,880/12= $6240 $74,880/12= $6240 Gross Monthly Income is $6240

4. Federal Tax Deductions 15% on the first $43,561 of taxable income, + 22% on the next $43,562 of taxable income (on the portion of taxable income over $43,561 up to $87,123), + 26% on the next $47,931 of taxable income (on the portion of taxable income over $87,123 up to $135,054), + 29% of taxable income over $135,054.

5. Federal Tax Deductions. 15% on the first $43,561 of taxable income 43,561 x 0.15= $6535 in tax 43,561 x 0.15= $6535 in tax $74,880 subtract $43,561= $31319 22% on the next $43,562 of taxable income (on the portion of taxable income over $43,561 up to $87,123), 31319 x 0.22= $6890.18 in tax $37,026+24,428= $61,454.82 13,425 in tax

6. Provincial Tax Deductions 10.8% on the first $31,000 of taxable income, + 12.75% on the next $36,000, + 17.4% on the amount over $67,000 Because the annual salary is $74,880; $31,ooo x 0.108= $3348.00 $36,000 x 0.1275= $4590.00 $7,880 x 0.174= $1371.12 Total Prov Tax = $9309.12

7. Total Tax Federal Tax plus Provincial Tax= Total Tax $13,425+$9309.12= $22734.12 $22,734.12 divided by 12= $1894.51 $1894.51 per month in Taxes

8. EI Contributions $195.50 per month up to $891.12 (Maximum for year) Based on a gross salary of 74,880, use the maximum of $891.12. $891.12/12= 74.26 per month

9. CPP Contributions Maximum Pensionable Earnings= $51,100 Basic Exemption is $3,500. Maximum Contributory Earnings $47,600 Employee Contribution Rate is 4.95% Maximum Contribution is $2356.20 74,880- 3500= $71,380 x 0.0495= $3533.31 Because $3533.31 is greater than $2356.20, we use $2356.20 $2356.20/12= 196.35 per month in contributions.

10. Totals A.Gross Monthly Income= $ 6240.00 B.Income Tax (Fed+Prov)= $ 1894.51 C.EI and CPP Contributions = $ 270.61 D. Net Monthly Income A-(B+C)= D= $4074.88 Total Monthly Expenses= $1500 Monthly Balance (Net Income subtract Monthly Expenses) $4074.88- $2510= $2574.88 $4074.88- $2510= $2574.88 Unexpectant Expenses - $200.00 Final Monthly Balance = 2374.88