600 lose jobs at Sun Media

In the slumps of the economic recession, many companies such as Sun Media are laying off their employees. Sun Media will be close to laying off about 1,000 full time workers which is equivalent to 10% of its workforce to save payroll. In its most recent quarter, Sun Media has reported that their earnings before interest, tax, depreciation, and amortization have gone down 13% from last year. As people begin to be more “digitalized”, the newspaper industry is falling because many people are looking online for their news.

http://www.canada.com/business/fp/story.html?id=1083955

This article talks about Sun Medias employees being layed off and why it had to happen. To relate to the chapter, every paycheque that the employee receives, there is an amount of deductions taken off from their pay. There are many deductions that the employer takes off but the Unemployment Insurance Deduction will help during hard times. Only an employee may be eligible for UI is if they have made sufficient contributions to the UI fund and is unemployed. Also, they will have to be willing to accept employment if their employer decides to call them back for work.

I think that this chapter was very informative because most high school students have part time jobs during the school year. I kind of had an idea of what payroll accounting was like, but now I have a better understanding of how the figures, especially the deductions are derived from. During hard times such as this recession, many workers are layed off from their daily job which means that they might have 1 less source of income if they’re married. I really like how the deductions that we pay from every cheque will benefit us in one way or another. One example is Unemployment Insurance. When you’re laid off, you will still receive a portion of your weekly income to help with expenses from the government.