Nordane SA takes part in a defined contribution plan and pays 6.5 % of pensionable salaries, with no other commitment (case facts). For the year, pensionable salaries amount to 3,280,000; total payroll is 3,650,000, because it includes bonuses that the plan rules exclude from the base. Calculate the expense for the year in respect of the plan.
- Pensionable salaries for the year
- 3,280,000
- Contribution rate on pensionable salaries
- 6.5 %
- Total payroll (non-pensionable bonuses included)
- 3,650,000