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Sandra works in British Columbia and is paid on a semi-monthly basis. She has a claim code of 1 on both her TD1 and TD1BC.

  1. Sandra works in British Columbia and is paid on a semi-monthly basis. She has a claim code of 1 on both her TD1 and TD1BC. She has the following type of earnings, benefits & deductions. She will not max out on CPP or EI this pay and will have full deductions. Please use 2019 rates for your calculation and show not only the deduction value but also the pensionable, insurable and taxable amounts on which they were based.

  1. Regular $3200
  2. Holiday Pay $250
  3. Group Life Employer paid Taxable benefit $15
  4. Employee RRSP contribution $200

Her employee matches her EI at a non-reduced rate (1.4) and additionally pays employer health tax at a rate of 1.95%. The pay ending is July 31st and all amounts will be paid to third parties for the month. The monthly amounts will be exactly double for month end reporting purposes.

Calculate gross to net, employee premiums and record all applicable accounting entries in the tables below:

Journal Entry #4786

Date: July 31, 2019

Account Name

Account No.

Debit

Credit

Regular Pay

30000-601

Holiday Pay

30000-602

CPP Contributions Payable

20000-203

EI Premiums Payable

20000-205

Federal Income Tax Payable

20000-206

Provincial Income Tax Payable

20000-206

RRSP Payable

20000-210

Payroll Clearing (Net Pay)

20000-218

Total

To record wages expense for pay period July 31, 2019.

Journal Entry #4787

Date: July 31, 2019

Account Name

Account No.

Debit

Credit

Payroll Clearing (Net Pay)

20000-218

Payroll Cash

10000-100

Total

To record payment to employees for pay period ending July 31, 2019

Journal Entry #4788

Date: July 31, 2019

Account Name

Account No.

Debit

Credit

CPP Employer

30000-610

EI Employer

30000-611

Group Life

30000-301

British Columbia EHT

30000-450

CPP Contributions Payable

20000-203

EI Premiums Payable

20000-205

Group Life Payable

20000-223

EHT Accrual

20000-225

Total

To record employers portion of CPP Contributions, EI Premiums, EHT and Group Life Expenses for pay period ending July 31, 2019

Journal Entry #4789

Date: July 31, 2019

Account Name

Account No.

Debit

Credit

CPP Contributions Payable

20000-203

EI Premiums Payable

20000-205

Federal Income Tax Payable

20000-206

Provincial Income Tax Payable

20000-206

Group Life Payable

20000-223

EHT Accrual

20000-225

RRSP Payable

20000-210

Payroll Cash

10000-100

Total

To record remitting to third parties for the month ending Date: July 31, 2019

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