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.