Question
Complete the entire pay cycle process by calculating gross to net pay, employer premium amounts and complete required accounting entries. Sandra works in British Columbia
- Complete the entire pay cycle process by calculating gross to net pay, employer premium amounts and complete required accounting entries.
- Sandra works in British Columbia and is paid on a semi-monthly basis. She has a claim code of 1 on both her TD1 and TD1BC. She has the following types of earnings, benefits & deductions. She will not max out on CPP or EI this pay and will have full deductions. Please use 2021 rates for your calculations and show not only the deduction value but also the pensionable, insurable and taxable amounts on which they were based.
- Regular $3200
- Holiday Pay $250
- Group Life Employer paid Taxable benefit $15
- RRSP contribution Employee deduction $200
Her employer matches her EI at a non-reduced rate (1.4) and additionally pays employer health tax at a rate of 1.95%. The pay ending is July 31st and all amounts will be paid to third parties for the month. The monthly amounts will be exactly double for month end reporting purposes (journal entry 4789).
Calculate gross to net, employer premiums and record all applicable accounting entries in the tables below:
| Journal Entry #4786 Date: July 31, 2021 | |||
| Account Name | Account No. | Debit | Credit |
| Regular Pay | 30000-601 |
|
|
| Holiday Pay | 30000-602 |
|
|
| CPP Contributions Payable | 20000-203 |
|
|
| EI Premiums Payable | 20000-205 |
|
|
| Federal Income Tax Payable | 20000-206 |
|
|
| Provincial Income Tax Payable | 20000-206 |
|
|
| RRSP Payable | 20000-210 |
|
|
| Payroll Clearing (Net Pay) | 20000-218 |
|
|
| Total |
|
|
|
| To record wages expense for pay period July 31, 2021. | |||
| Journal Entry #4787 Date: July 31, 2021 | |||
| Account Name | Account No. | Debit | Credit |
| Payroll Clearing (Net Pay) | 20000-218 |
|
|
| Payroll Cash | 10000-100 |
|
|
| Total |
|
|
|
| To record payment to employees for pay period ending July 31, 2021 | |||
| Journal Entry #4788 Date: July 31, 2021 | |||
| Account Name | Account No. | Debit | Credit |
| CPP Employer | 30000-610 |
|
|
| EI Employer | 30000-611 |
|
|
| Group Life | 30000-301 |
|
|
| British Columbia EHT | 30000-450 |
|
|
| CPP Contributions Payable | 20000-203 |
|
|
| EI Premiums Payable | 20000-205 |
|
|
| Group Life Payable | 20000-223 |
|
|
| EHT Accrual | 20000-225 |
|
|
| Total |
|
|
|
| To record employers portion of CPP Contributions, EI Premiums, EHT and Group Life Expenses for pay period ending July 31, 2021 | |||
| Journal Entry #4789 Date: July 31, 2021 | |||
| Account Name | Account No. | Debit | Credit |
| CPP Contributions Payable | 20000-203 |
|
|
| EI Premiums Payable | 20000-205 |
|
|
| Federal Income Tax Payable | 20000-206 |
|
|
| Provincial Income Tax Payable | 20000-206 |
|
|
| Group Life Payable | 20000-223 |
|
|
| EHT Accrual | 20000-225 |
|
|
| RRSP Payable | 20000-210 |
|
|
| Payroll Cash | 10000-100 |
|
|
| Total |
|
|
|
| To record remitting to third parties for the month ending Date: July 31, 2021 | |||
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
978-1118098615
