$1$ Payroll Calculation

You have recently been hired as a Controller for a company that employs $60$ staff. Your new company is called Can Do Contractors Inc. Can Do Contractors Inc.$$s previous controller left in a hurry. You see that the previous Controller had access to the bank account and could sign Company Cheques with their own. They also possessed a company credit card as well as full access to the accounting software.

One of your first tasks is to check the new Payroll Software. To do this, you pull an employee payment record to check manually against the Payroll Software. If your calculation $=$ the new Payroll Software, you will have a level of confidence in the new system.

You pull Bob$$s payroll information for the period:

Bob earns $$55,000$ per year and is paid on a semi$-$monthly pay schedule. Bob enjoys the benefit of a company paid cell phone for personal use $($cost is $$150$ per month$)$ and receives $6\%$ vacation pay on each payment. This pay cycle included $15$ hours of approved overtime worked over the normal $40-$hour work week, and a reimbursement for travel expenses for $$434\mathrm{.}20.$ The employee contributes $5\%$ of their regular wages to a Registered Retirement Savings Plan each pay cycle.

REQUIRED: Calculate Bob$$s Gross Earnings.

For this calculation, include Travel Expenses Reimbursements in Gross Earnings $($you will note that most Payroll Software systems will exclude Reimbursements from Gross Earnings as treat as a separated line item$).$

Bobs Gross Earnings items $[$Template$]$

Regular

Overtime Pay

Vacation PAID

Bonus$/$Commission$/$Shift Premium

Allowances $-$ Taxable

Reimbursements

Gross Earnings

$[$Note Templates will have additional rows not necessarily used for the Question, it is a "catch all"$]$

You can cut & paste this into Excel or Calculate on a Calculator.

$$

REQUIRED: Calculate Bob$$s CPP contribution.

Bob$$s PENSIONABLE EARNINGS AKA CPP Contributory EARNINGS $[$Template$]]$

Start Point: Gross Earnings

Less Nontaxable Allowances

Less Severance or Retirement

Less Nontaxable Allowances $-$ Safety Allowance

Less Safety Allowance

Less Reimbursements

Add Taxable Benefits

Plus Employee Taxable Benefits

Plus cell Phone

Plus Car Allowance

$=$ Pensionable Earnings $-$

CPP Contribution

Pensionable Earnings $-$

CPP Contribution Rate $($use $2022)$

You can cut & paste this into Excel or Calculate on a Calculator

$$

$2\mathrm{.}2$ Payroll Segregation of Duties MEMO

Payroll is where most of the fraudulent activity occurs in businesses. Accountants use Segregation of Duties to safeguard company assets.

REQUIRED: Research Segregation of Duties and prepare a Memo to your company executive.

In the Memo you will:

$1)$ Give a definition$/$ describe Segregation of Duties $($SOD$).$

$2)$ List down $3$ types of SOD.

$3)$ Provide a solution for the Red Flag. Is it okay to have one person that has access to bank account, single signee of the Cheque Book and control of Payroll? $-$ discussion should be at least $3$ lines.

In New type in Memo into the search box to find a Memo template.

$$

PART $3$: PAYROLL & SOFTWARE

$3\mathrm{.}1$ Add New Employee to Payroll Software

You must prepare payroll for a new employee, Corwin Hart, who joined $2$ weeks ago. Following best practice, you sent Corwin a TD$1$ to fill out and received the below completed TD$1,$ which you will use to set him up in your QuickBooks Payroll.

Corwin gets paid a rate of $$30$ an hour. In the payroll period, Corwin worked for $35$ hours.

The pay period is January $1,2023,$ to January $15,2023.$ The payroll date is the $30$th of January.

Use Default Tax rates for Provincial and Federal Income Tax.

Your Company pays employees bi$-$monthly. Vacation pay of $4\%$ is accrued onto the employee$$s payroll file. When the employee wants to take vacation, they can draw down from the saved Vacation hours.

REQUIRED: Prepare payroll for Corwin.

There are $2$ options for QuickBooks Payroll $$ choose any $1.$

You will have to add a new employee in Employee Center, and add the details provided $+$ information from the TD$1.$

$1)$ Use QuickBooks Online to add the Employee payroll information, process Payroll and submit or pdf pay cheque for Corwin.

$2)$ Use the CRA online Payroll Calculation PDOC: Payroll Deductions Online Calculator $-$ Canada.ca$.$ Copy the PDOC calculation page and Paste into the Capstone Document.