Question
An Ontario based incorporated business has three employees who are paid as follows for the first payroll in a new calendar year: Assume they are
An Ontario based incorporated business has three employees who are paid as follows for the first payroll in a new calendar year: Assume they are all paid on the same pay date the weekly and bi-weekly pay dates are on the same dates. Employee A - 35 years old, earns gross salary weekly of $ 900, net pay paid weekly - income tax on $ 900 is $ 150 Employee B - 20 years old, earns gross bi-weekly (every two weeks) salary of $ 100, net pay paid bi-weekly - income tax on $ 100 is $ 0 (nil) Employee C (the owner of the business) - 71 years old - paid $ 2,500 salary by-weekly (every two weeks), net pay paid bi-weekly - income tax on $ 2,500 is $ 450 Assume a WSIB rate of 2%. There are no other required benefit costs (EHT does not apply).
Required: Prepare the required one full journal entry to record the payroll for this period including amounts owed to all employees and to the various government agencies and the companys payroll and benefit expenses.
Note - show all calculations to support the journal entry.
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