You have been contracted to do the payroll for a small software development start-up company in Kanata.You are not an employee but self-employed.The company currently has 3 employees but due to a promissing outlook for its product, it will be hiring 5 more employees starting on July 1, 2020.Current employees are Melody Lane, Julie Hamm and Edmund Fox.These employees all work a normal 40 hour work week.The employer retains vacation pay and pays it out when employees take a vacation.No employees are scheduled to take any vacation during April, 2020.

Facts:

Year-to-date amounts for CPP pensionable earnings, CPP, EI insurable earnings and EI are up to March 31 (Beginning numbers). All employees started working for the company in 2019. No employees have been or will be paid for overtime or any other additional payments other than their regular salary. All employees claim the basic personal amount for tax purposes. The only deductions off employees pay are statutory deductions. All current and future employees are between the ages of 20 - 60. Melody Lane is paid semi-monthly.She has a company vehicle and the taxable benefit is $434.60 per pay. Julie Hamm is paid bi-weekly.She has been paid 7 times from Jan 1 to Mar 31.Use 26 pay periods in year for PDOC. Julie elects $20 of additional federal income tax deducted per pay. Edmund Fox is paid monthly and works 160 hours per month. EHT

Due to the salary level of the 3 employees, an annual EHT return and payment is currently required. The employer is not associated with any other company. The pensionable earnings are equal to the total remuneration for EHT purposes. Assume that January 1 - March 31 earning will be the same in all other quarters of the year for the 3 employees. The employer's January 1 - June 30 payroll only included these 3 current employees. On July 1 the company will hire 5 additional employees that will earn 1.5 times as much as your current employees YTD amount to June 30th, 2020.

Payroll Register 30 Marks Month of April 2020 CPP rate 5.25% Exemption $3,500.00 Name of Company Business Number Max Pension $58,700 Heck of a Business El rate 1.58% Max Insurable $54,200 Name of 1st employee Address of first employee Social Insurance Number Employee #1 Melody Lane Automobile taxable benefit $434.60 per pay Year-to-date amounts Pensionable CPP Insurable El Semi-monthly Federal Provincial Earnings Max Earnings Max Pay Date Gross Pay Tax Tax CPP EI Net Pay Max $58700 $2,898.00 Max $54200 $856.00 Beginning (Mar 31) $44,742.80 $2,303.06 $42,135.20 $665.74 15-Apr-20 $45,177.40 $2,303.06 $42,135.20 $665.74 30-Apr-20 $45,612.00 $2,303.06 $42,135.20 $665.74Name of 2nd employee Address of second employee Social Insurance Number Employee #2 Julie Hamm Year-to-date amounts Pensionable CPP Insurable EI Bi-weekly Federal Provincial Earnings Max Earnings Max Pay Date Gross Pay Tax Tax CPP EI Net Pay Max $58700 $2,898.00 Max $54200 $856.00 Beginning (Mar 31) $22,834.00 $1,176.98 $22,834.00 $360.78 12-Apr-20 $22,834.00 $1,176.98 $22,834.00 $360.78 26-Apr-20 $22,834.00 $1,176.98 $22,834.00 $360.78 Name of 3rd employee Address of third employee Social Insurance Number Employee #3 Edmund Fox Year-to-date amounts Pensionable CPP Insurable EI Monthly Federal Provincial Earnings Max Earnings Max Pay Date Gross Pay Tax Tax CPP EI Net Pay Max $58700 $2,898.00 Max $54200 $856.00 Beginning (Mar 31) $30,448.20 $1,552.59 $30,448.20 $481.08 30-Apr-20 $30,448.20 $1,552.59 $30,448.20 $481.08\f4 Enter the employer portion of the total statutory deductions for the month of April 2020. CPP 2 Marks EI 3 Marks Federal tax 0.5 Mark Provincial tax 0.5 Mark 5 Easter normally falls in the month of April. Would Julie Hamm be eligible for holiday pay for Easter Monday? 1 Mark 6 The employer is a quarterly remitter for WSIB purposes. Calculate the WSIB insurable earnings for the first quarter Jan-Mar and enter your answer in cell D64. Pensionable earnings are the same as insurable earnings for WSIB. None of the employees are owners or executive officers. Working area Assesable Earnings 4 Marks7 Using the additional information on the data tab and the data on the payroll tab, calculate the estimated total remuneration for EHT purposes from January 1 to December 31, 2020 for the current and future employees. Enter the total remuneration in cell D78. Working area Total Remuneration 4 Marks 8 Will the employer have to pay EHT yearly or monthly given your answer to #7 above? Use limits as described in the textbook. Frequency of payments 1 Mark