Question: Appendix 1 - Payroll - Homework Question Mary Wery works for Charlie's Burgers Bonza (CBB) for $15.75/hr, with time and a half for any hours
Appendix 1 - Payroll - Homework Question Mary Wery works for Charlie's Burgers Bonza (CBB) for $15.75/hr, with time and a half for any hours in excess of 35 hours per week. Mary's payroll deductions include 21% on earnings for income tax, 5.95% on earnings for CPP, and 1.68% on earnings for EI. The basic annual exemption on CPP is $3,500. In addition, Mary contributes $10 per week to her family's Registered Education Saving Plan (RESP). During the week of February the 7th, Mary worked 40 hours. CBB is required to match its employees' CPP contributions and pay 1.4x its employees' EI contributions. Assume that Mary has yet to reach the maximum earning level for CPP or EI. CBB offers each of its employees a pension of 5% of their earnings to be held and managed by Sunlife Financials. Required: Compute Mary's gross and net pay for the week (show all work). Compute the total payroll costs to CBB associated to Mary's pay for the week (show all work). Make the appropriate journal entry(ies) to record CBB's payroll costs
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