Question
British Tobacco (BT) prepares payroll at the end of each month. For the month of December, the total payroll is 2,500,000 ALL, bonus performance as
British Tobacco (BT) prepares payroll at the end of each month. For the month of December, the total payroll is 2,500,000 ALL, bonus performance as a 13-th partly month salary is 50%. employee progressive income tax from employment is 13%, (0% till the limit 500,000 ALL), social securities are respectively 15% and 10% employer-employees contribution.
Required
1. Provide the combined journal entry to record the payroll for December, including employee deductions and employers tax contribution for social securities. Assume that BTA employees have not been paid and BT has yet to transfer any withholdings to the government.
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