Question
Madawaska Timber Inc. had the following transactions: Feb. 14 The board of directors for Madawaska Timber Inc. approved a bonus payout to employees in the
Madawaska Timber Inc. had the following transactions: Feb. 14 The board of directors for Madawaska Timber Inc. approved a bonus payout to employees in the amount of $225,000. The source deductions on the bonus earned were CPP of $11,138, which Madawaska matched; EI of $3,668, which it matched at 1.4 times; and income taxes of $45,000 and finally, $2,250 to the Union of Forest Workers (UFW) to cover union dues. In addition, Madawaska was required to pay Workers Compensation Board (WCB) of British Columbia premiums of 6.54% based on the bonus costs. Feb. 15 Paid the bonus approved by the board of directors on February 14. Feb. 20 Made the remittance to the government related to the February 14 bonus. Feb. 21 Made the remittance to UFW related to the February 14 bonus. (a) Partially correct answer iconYour answer is partially correct. Determine the amount of the employees net wages, the total wages expense for Madawaska and the total amount that is payable to the government on Feb. 20. (Round answers to 0 decimal places, e.g. 125.) Employees Net Wages $ 162944 Total Wages Expense $ 388423.2 Total amount that is Payable to the Government $
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