The following information is used to calculate Cleaning Capers Ltd’s payroll for the week ending 30 June 2020.

Employees’ superannuation contribution is 9% of their gross pay. PAYG tax is taken out at 30% after subtracting the donations and superannuation. All employees also have the following deductions from their after‐tax pay: 3.5% life insurance and 10% medical insurance.

Required

(a) Calculate ‘take‐home’ pay for each employee.

(b) Prepare a general journal entry to accrue the payroll and associated deductions.

(c) Prepare a cash payments journal entry to record the payment of wages.

(d) Assume that, on 6 July 2020, the company forwarded cheques to cover amounts withheld from employees’ wages for the month of June. Total income tax deductions were $6040. Other deduction liabilities were four times the total weekly deductions. Prepare a cash payments journal entry to record these payments.

Transcribed Image Text:

Employee Gross pay Salary sacrifice donations V. Gribben 952 D. Mitchell 1240 F. Speight 2180 P. Aiken 1230 2488 20 40 50 30