Milly’s Drive-In’s 12 employees earn a gross pay of $2,050 each per month. Milly’s Drive-In contributes 8% of gross pay to a retirement program for employees and pays an extended medical insurance premium of $50 per month per employee.

Required

Prepare the entries to record the employer’s payroll costs for the month of March 2018. Use the payroll tables to determine CPP, EI, and income tax deductions (assume claim code 1). For the complete CPP, EI, and federal and provincial tax deduction tables, please go to Connect.