Payroll Administration Payroll Register and Journal

For the following employer, prepare an appropriate register, journal entries and create a ledger for payroll using an Excel spreadsheet.

Star Millennium Office Supply has two salaried and three hourly employees in Toronto, as follows:

	TD1 Fed	TD1 ON	Pay Rate	Basis	Hours	Department	Monthly Life Insurance*
Alisha	1	1	$120,000	Annual		Manager	76.00
Brandon	2	1	$6,000	Monthly		Office	42.00
Manian	3	2	$27.00	Hour	35	Office	18.50
Carol	4	2	$20.00	Hour	48	Sales	Nil
Daniel	5	5	$35.00	Hour	40	Sales	20.50

* Includes Ontario tax

Brandon is also paid an automobile allowance of $100 per month.

We have received a garnishment order for Manian requiring a withholding equal to 20% of net pay.

The payroll is processed for all employees on a weekly basis and this payroll is for the week ending March 31st, 2023. There will be 52 regular pays in the year.

Star Millennium Office Supply pays overtime at the minimum Ontario standard. The employer pays 4% vacation to hourly employees with each pay and accrues 6% for salaried employees. The employer is estimates current year W.S.I.B. premiums at $3.18 per $100 of assess-able earnings. Apply present EHT for Ontario.

Hourly paid employees are members of a Union with dues per week of $20.

All employees contribute $25.00 per pay to the United Way through payroll deduction.

All employees are between the ages of 25 and 65.

The calculation of statutory deductions should be done by using the CRA online tables.

Guidelines to complete the assignment

Prepare a payroll register

Created for each pay cycle

Shows detailed earnings and deductions for each employee

Prepare journal entries to record payroll liabilities and payments

Prepared from the register

Must also record additional expenses and liabilities for the employer arising from payroll

Post journal entries to the general ledger

Payroll administrator must also reconcile the general ledger account balances related to payroll transactions