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Complete the entire pay cycle process by calculating gross to net pay, employer premium amounts and complete required accounting entries. a. Sandra works in British

  1. Complete the entire pay cycle process by calculating gross to net pay, employer premium amounts and complete required accounting entries.

a. 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.

  1. Regular $3200
  2. Holiday Pay $250
  3. Group Life Employer paid Taxable benefit $15
  4. 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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