P13.6 The following is a payroll sheet for Bayview Golf Corporation for the first week of November 2020. The EI rate is 1.66% and the maximum annual deduction per employee is $858.22. The employer's obligation for El is 1.4 times the amount of the employee deduction. Assume a 15% income tax rate for all employees, and a 4.95% CPP premium charged to both the employee and employer, up to an annual maximum of $2,593.80 per employee. Union dues are 1% of earnings. Bayview is a private corporation following ASPE. Earnings 1st Week Nov. Income Tax Union Name to Oct. 31 Earnings Deducted CPP EI Dues L. Meloche $36,120 $ 840 P. Groot 33,540 780 D. Beaux 54,180 1,260 C. Regier 6,000 1,000 Instructions a. Complete the payroll sheet and prepare the necessary entry to record the payment of the payroll. Round amounts to the nearest cent. b. Prepare the entry to record the employer's payroll tax expense. c. Prepare the entries to record the payments of the payroll liabilities (1) to the Receiver General for Canada and (2) to the employees' union. Assume that Bayview pays all payroll liabilities at the end of each week. d. Finance What is the total expense that Bayview will report for the first week of November 2020 relative to employee compensation? (Ignore any vacation pay accrual.) What percentage of gross pay is the payroll tax expense? Will this percentage be a constant for all pay periods? e. Digging Deeper Bayview's management is considering laying off all of its employees and immediately thereafter entering into contracts with each employee, creating a contractor relationship with the business. Bayview reasons that severance packages do not need to be paid because immediate reinstatement with the company will be made available to all employees. This way all payroll tax expenses are avoided and the total labour expense would not only be reduced but be characterized as contract service expense on the income statement. Assume the plan is put into place for the current year. As a potential investor who is looking at the current year's comparative income statement, how will your decisions be affected by the reclassification of labour costs