Debbie Walker earns a salary of $4,000 per month during the year.Employment Insurance taxes (EI) are 1.88%
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Question:
Debbie Walker earns a salary of $4,000 per month during the year.Employment Insurance taxes (EI) are 1.88% of the first $49,500 in earnings. The Canadian Pension Plan (CPP) rate is 4.95% of the first $53,600 in earnings, less a basic annual exemption of $3,500. During the year, $23,000 was withheld for income taxes.
Instructions
a) Create journal entry summarizing the payment of Walker's total salary during the year.
b) Create a journal entry summarizing the employer's payroll tax expense on Walker's salary for the year.
c) Determine the cost of employing Walker for the year.
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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