Ahmad Company has the following data for the weekly payroll ended May 31:

Employees are paid 1.5 times the regular hourly rate for all hours worked over 40 hours per week. Ahmad Company must make payments to the workers’ compensation plan equal to 2% of the gross payroll. In addition, Ahmad matches the employees’ health insurance contributions and accrues vacation pay at a rate of 4%. 

Instructions 

a. Prepare the payroll register for the weekly payroll. Calculate each employee’s EI deduction at a rate of 1.58% of gross pay. 

b. Record the payroll and Ahmad Company’s employee benefits. 

c. Describe a control that should be included as part of the timekeeping function of the payroll process at Ahmad Company.

Transcribed Image Text:

Employee A. Kassam H. Faas G. Labute Hours Worked M Tu W Th F S 9 8 9 8 10 3 8 8 8 8 5 9 10 9 8 0 8 10 Hourly Rate $18 20 15 CPP Deduction $45.87 48.11 36.39 Income Tax Withheld $126.55 135.55 97.10 Health Insurance $10 15 15