Question
Debbie Walker earns a salary of $5,500 per month during the year. Employment Insurance taxes (EI) are 1.88% of the first $49,500 in earnings. The
Debbie Walker earns a salary of $5,500 per month during the year. Employment Insurance taxes (EI) are 1.88% of the first $49,500 in earnings. The Canadian Pension Plan (CPP) rate is 4.95% of the first $53,600 in earnings, less a basic annual exemption of $3,500. During the year, $23,000 was withheld for income taxes.
a)Prepare a journal entry summarizing the payment of Walker's total salary during the year. (10 marks)
b)Prepare a journal entry summarizing the employer's payroll tax expense on Walker's salary for the year.(3 marks)
c)Determine the cost of employing Walker for the year. (2 marks)
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