S$7-1$ Encore Records has two employees who are paid on the $1$st and $15$th of each month for the work they performed in the preceding half$-$month. At February $28,$ each employee is owed gross pay of $$1,000,$ but each one must have $10\%$ of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of $5\mathrm{.}45\%$ of their gross pay and pay Employment Insurance premiums of $1\mathrm{.}58\%$ of their gross pay.

Prepare the payroll journal entries required to reflect these amounts, along with Encore$$s share of CPP contributions and EI premiums, in Encore$$s February $28$ financial statements.

Show what Encore would report on its balance sheet at February $28,$ and on its income statement for the month ended on that date. why does employee insurance rate change $?$