Question 1

First Services Company has two employees on their payroll. Their personal information is as follows:

Employee #1 Lovepreet Kaur, 50 years old

Annual Salary $72,000

• Married and with a 9-year-old son (not infirm or disabled)
• Studies part-time at Seneca College for 4 months, and will pay tuition fees of $4,500.
• Spouse, Taylor will have net income of $0.

Employee #2 James Fernandes, 27 years old

Annual Salary $48,000

• James also will receive an allowance for use of her own automobile for employment of $500 per month
• Single
• Studied part-time at University of Toronto for 4 months, paid tuition fees of $3,500
• James 5-year-old son lives with him (and has no income).

For both employees, assume:

• they have been employed since January 1, 2021, and
• their pay period was monthly.

REQUIRED:

Using the 2022 Ontario Payroll Deduction Guides & the TD1 tax credit forms:

1. Complete the accompanying TD1 and TD1ON forms to determine the Federal and Provincial claim codes for Lovepreet Kaur and James Fernandes based on the above information.
2. Determine the employee and employer contributions required for Lovepreet and James for January 2022
3. Which payroll period, if applicable, will the maximum CPP and EI contributions be reached for Lovepreet and James, respectively?
4. Calculate and prepare separate payroll journal entries for Lovepreet Kaur and James Fernandes for the month of January 2022.
5. Prepare a 2022 T4 slip (fill out box 14, 16, 18 and 22) for Lovepreet Kaur and James Fernandes, assuming that payroll details do not change for the remainder of the year. Use the copy of the T4 slips provided below.

Question 1

First Services Company has two employees on their payroll. Their personal information is as follows:

Employee #1 Lovepreet Kaur, 50 years old

Annual Salary $72,000

• Married and with a 9-year-old son (not infirm or disabled)
• Studies part-time at Seneca College for 4 months, and will pay tuition fees of $4,500.
• Spouse, Taylor will have net income of $0.

Employee #2 James Fernandes, 27 years old

Annual Salary $48,000

• James also will receive an allowance for use of her own automobile for employment of $500 per month
• Single
• Studied part-time at University of Toronto for 4 months, paid tuition fees of $3,500
• James 5-year-old son lives with him (and has no income).

For both employees, assume:

• they have been employed since January 1, 2021, and
• their pay period was monthly.

REQUIRED:

Using the 2022 Ontario Payroll Deduction Guides & the TD1 tax credit forms:

1. Complete the accompanying TD1 and TD1ON forms to determine the Federal and Provincial claim codes for Lovepreet Kaur and James Fernandes based on the above information.
2. Determine the employee and employer contributions required for Lovepreet and James for January 2022
3. Which payroll period, if applicable, will the maximum CPP and EI contributions be reached for Lovepreet and James, respectively?
4. Calculate and prepare separate payroll journal entries for Lovepreet Kaur and James Fernandes for the month of January 2022.
5. Prepare a 2022 T4 slip (fill out box 14, 16, 18 and 22) for Lovepreet Kaur and James Fernandes, assuming that payroll details do not change for the remainder of the year. Use the copy of the T4 slips provided below.

Question 1

First Services Company has two employees on their payroll. Their personal information is as follows:

Employee #1 Lovepreet Kaur, 50 years old

Annual Salary $72,000

• Married and with a 9-year-old son (not infirm or disabled)
• Studies part-time at Seneca College for 4 months, and will pay tuition fees of $4,500.
• Spouse, Taylor will have net income of $0.

Employee #2 James Fernandes, 27 years old

Annual Salary $48,000

• James also will receive an allowance for use of her own automobile for employment of $500 per month
• Single
• Studied part-time at University of Toronto for 4 months, paid tuition fees of $3,500
• James 5-year-old son lives with him (and has no income).

For both employees, assume:

• they have been employed since January 1, 2021, and
• their pay period was monthly.

REQUIRED:

Using the 2022 Ontario Payroll Deduction Guides & the TD1 tax credit forms:

1. Complete the accompanying TD1 and TD1ON forms to determine the Federal and Provincial claim codes for Lovepreet Kaur and James Fernandes based on the above information.
2. Determine the employee and employer contributions required for Lovepreet and James for January 2022
3. Which payroll period, if applicable, will the maximum CPP and EI contributions be reached for Lovepreet and James, respectively?
4. Calculate and prepare separate payroll journal entries for Lovepreet Kaur and James Fernandes for the month of January 2022.
5. Prepare a 2022 T4 slip (fill out box 14, 16, 18 and 22) for Lovepreet Kaur and James Fernandes, assuming that payroll details do not change for the remainder of the year. Use the copy of the T4 slips provided below.

Question 1

First Services Company has two employees on their payroll. Their personal information is as follows:

Employee #1 Lovepreet Kaur, 50 years old

Annual Salary $72,000

• Married and with a 9-year-old son (not infirm or disabled)
• Studies part-time at Seneca College for 4 months, and will pay tuition fees of $4,500.
• Spouse, Taylor will have net income of $0.

Employee #2 James Fernandes, 27 years old

Annual Salary $48,000

• James also will receive an allowance for use of her own automobile for employment of $500 per month
• Single
• Studied part-time at University of Toronto for 4 months, paid tuition fees of $3,500
• James 5-year-old son lives with him (and has no income).

For both employees, assume:

• they have been employed since January 1, 2021, and
• their pay period was monthly.

REQUIRED:

Using the 2022 Ontario Payroll Deduction Guides & the TD1 tax credit forms:

1. Complete the accompanying TD1 and TD1ON forms to determine the Federal and Provincial claim codes for Lovepreet Kaur and James Fernandes based on the above information.
2. Determine the employee and employer contributions required for Lovepreet and James for January 2022
3. Which payroll period, if applicable, will the maximum CPP and EI contributions be reached for Lovepreet and James, respectively?
4. Calculate and prepare separate payroll journal entries for Lovepreet Kaur and James Fernandes for the month of January 2022.
5. Prepare a 2022 T4 slip (fill out box 14, 16, 18 and 22) for Lovepreet Kaur and James Fernandes, assuming that payroll details do not change for the remainder of the year. Use the copy of the T4 slips provided below.