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home / study / business / accounting / accounting questions and answers / scenario glorious florists is a floral supply company with offices and boutiques in ontario ... Question: SCENARIO Glorious Florists is a floral supply company with offices and boutiques in Ontario and ... SCENARIO Glorious Florists is a floral supply company with offices and boutiques in Ontario and Québec. The organization started operations in 1978 and currently has an approximate annual payroll of $12,000,000 in each jurisdiction. The organization is considering terminating the employment of five employees in each jurisdiction. To assist with forecasting the budget for the balance of the year, Nancy Wilson, the Director of Finance has asked you, as the Payroll Supervisor, to provide her with the details on all legislated payments on termination of employment required for each jurisdiction. In addition to the required payments on termination, include any employer costs related to the employees’ statutory deductions. Prepare your response (350 – 500 words) using your name, correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource. Any responses taken directly from the external government resource or course material will not be accepted. Information referenced from the government resource(s) and the course material must be cited. For example: if you are referencing the Canada Revenue Agency’s Employers' Guide - Payroll Deductions and Remittances – T4001, state the URL where the information can be found, https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4001.html and the page number, if applicable if you are referencing the course material, state the course name, chapter and page number where the information can be found (for example, PF1, 1-1) This written assignment is worth 7.5% of your final mark.
Explanation / Answer
Glorious Florists is a floral supply company with offices and boutiques in Ontario and Québec. The organization started operations in 1978 and currently has an approximate annual payroll of $12,000,000 in each jurisdiction.The organization is considering terminating the employment of five employees in each jurisdiction.
The question is about an official letter from Payroll supervisor to Finance department. The purpose is to estimate the financial dues in the near future and make adjustments for the same in the ensuing budget to be prepared for next year. Next financial year starts in April which is in the near future, and hence estimate of termination benefits would go a long way in helping forecasting expenditures and other arrangements to meet all the expenditure within time. Hence a letter is drafted with a table providing details of benefits to each of the 5 employees eligible. Other two are not eligible for retirement benefits.
Evidence shows that many Ontarians are not saving enough to maintain their standard of living in retirement. Beyond the statistics, many feel insecure and uncertain about their financial future.
It’s important to learn how the retirement income system works, so that you and your family can have the retirement security you deserve.
Retirement income
The Canadian retirement income system is typically described as having three parts:
Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). OASprovides a monthly benefit to almost all Canadians when they reach age 65. GIS provides supplemental income to Canadians who have low retirement incomes.
Canada Pension Plan (CPP) provides a monthly benefit to people who have contributed to this publicly-administered plan over the course of their working lives.
Personal Savings and Workplace Pension Plans. Workplace pension plans are privately administered by employers who choose to offer them. Personal savings can include Registered Retirement Savings Plans (RRSPs), savings accounts, investments and home equity.
These combine to fund your retirement, but the importance of each one may differ depending on your personal circumstances.
How much you should save
Retirement experts suggest that households should aim to have 50-70% of their pre-retirement income for living expenses in retirement.
For example, assuming you want to replace 70% of your pre-retirement income:
If your annual pre-retirement income is $20,000 per year: your standard of living in retirement will likely be maintained by OAS and CPP income, even without additional income from savings.
If your annual pre-retirement income is $40,000 per year: in addition to OASand CPP income, you would need an additional $11,795 per year, which must come from your personal savings and/or workplace pension plans to maintain your standard of living in retirement.
If your annual pre-retirement income is $75,000 per year: in addition to OASand CPP income, you would need an additional $33,329 per year, which must come from your personal savings and/or workplace pension plans to maintain your standard of living in retirement.
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