The following is a payroll sheet for Bayview Golf Corporation for the month of September 2011. The
Question:
The following is a payroll sheet for Bayview Golf Corporation for the month of September 2011. The employment insurance rate is 1.73% and the maximum annual amount per employee is $747.36. The employer's obligation for employment insurance is 1.4 times the amount of the employee deduction. Assume a 10% income tax rate for all employees, and a 4.95% CPP premium charged to both the employee and employer, up to an annual maximum of $2,163.15 per employee. Union dues are 1% of earnings.
Instructions
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.
(b) Make the entry to record the employer’s payroll tax expenses.
(c) Make the entry to record the payment of the payroll liabilities. Assume that the company pays all payroll liabilities at the end of each month.
(d) What is the total expense that the company will report in September 2011 relative to employee compensation?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.