Bill Runner earns $8,000 per month salary during the year. EI tax is 1.88% on the first
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Question:
Bill Runner earns $8,000 per month salary during the year. EI tax is 1.88% on the first $49,500 in earnings (maximum EI for the year: $930.60) The CPP tax rate is 4.96% of the first $56,300 in earnings (maximum CPP for the year: $2,479.95), less the basic yearly tax exemption of $3,500.
Instructions:
a. Prepare a journal entry summarizing the payment of total salary during the year.
b. Prepare a journal entry summarizing employer's payroll & expense on salary for the year.
c. Determine the total cost of employing Bill Runner for the year.
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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