Payroll Calculation

You have recently been hired as a Controller for a company that employs 60 staff. Your new company is called Can Do Contractors Inc. Can Do Contractors Inc.s previous controller left in a hurry. You see that the previous Controller had access to the bank account and could sign Company Cheques with their own. They also possessed a company credit card as well as full access to the accounting software.

One of your first tasks is to check the new Payroll Software. To do this, you pull an employee payment record to check manually against the Payroll Software. If your calculation = the new Payroll Software, you will have a level of confidence in the new system.

You pull Bobs payroll information for the period:

Bob earns $55,000 per year and is paid on a semi-monthly pay schedule. Bob enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40-hour work week, and a reimbursement for travel expenses for $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle.

REQUIRED: Calculate Bobs Gross Earnings.

For this calculation, include Travel Expenses Reimbursements in Gross Earnings (you will note that most Payroll Software systems will exclude Reimbursements from Gross Earnings as treat as a separated line item).

Bobs Gross Earnings items [Template]RegularOvertime PayVacation PAID Bonus/Commission/Shift PremiumAllowances - TaxableReimbursementsGross Earnings