Question
An employee earns $60,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone
An employee earns $60,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $160 per month) and receives 4% vacation pay on each payment. This pay cycle included 16 hours of approved overtime worked over the normal 40 hour work week and a reimbursement for travel expenses in the amount of $450. The employee contributes 6% of their regular wages to a Registered Retirement Savings Plan each pay cycle. 1. Calculate the Gross Earnings. 2. Calculate the Pensionable Earnings. 3. Calculate contributory earnings 4. Calculate the Insurable Earnings. I 5. Calculate the Canada Pension Plan Contribution. 6. Calculate the Employment Insurance Premium. 7. Calculate the Gross Taxable Earnings. 8. Calculate the Net Taxable Earnings. 9. The employee is a Claim Code 1 both Federally and Provincially and works in Ontario. calculate Federal tax deductions 10.Calculate Provincial tax deductions 11.Calculate total deductions 12.Calculate employer payroll liability 13. Write payroll journal entries
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