Western Electric Company pays its support staff weekly and its electricians on a semi-monthly basis. The following

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Western Electric Company pays its support staff weekly and its electricians on a semi-monthly basis. The following support staff payroll information is available for the week ended June 8, 2012:
Employee Name _________ Weekly Earnings __________ Claim Code
Chris Tanm .......................... $ 945 ..................... 2
Terry Ng ............................. 1,130 ..................... 4
Olga Stavtech ....................... 1,130 ..................... 1
Alana Mandell ...................... 1,067 ..................... 1
The electricians' salaries are based on their experience in the field, as well as the number of years they have worked for the company. All three electricians have been with the company more than two years. The annual salaries of these employees are as follows:
Employee Name __________________ Annual Salary for 2012
Sam Goodspeed ..................................... $43,440
Marino Giancarlo .................................... 64,770
Hillary Ridley ........................................ 76,880
Instructions
(a) Prepare a payroll register for June 8, 2012, weekly payroll for the support staff. Calculate the CPP and EI deductions using the formula provided in Appendix 10A. Use the tables in Illustration 10A-3 to determine federal and provincial income taxes.
(b) Calculate the CPP and EI deductions for each of the electricians for their June 15, 2012, semi-monthly payroll.
(c) In which semi-monthly pay period will each of the electricians reach their maximum CPP and EI payments for 2012?
TAKING IT FURTHER
Why are there separate payroll deduction tables for determining weekly, semi-monthly and monthly income tax deductions?
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Accounting Principles Part 2

ISBN: 978-1118306796

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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