(Payroll Tax Entries) The payroll of Auber Corp. for September 2008 is as follows: Total payroll was $495,000. Pensionable (CPP) and insurable (EI) earnings were $375,000. Income taxes in the amount of $90,000 were withheld, as was $9,000 in union dues. The employment insurance tax rate was 1.80% for employees and 2.52% for employers and the CPP rate was 4.95% for employees and 4.95% for employers.
(a) Prepare the necessary journal entries to record the payroll if the wages and salaries paid and the employer payroll taxes are recorded separately.
(b) Prepare the entries to record the payment of all required amounts to the CRA and to the employees' union.
(c) For every dollar of wages and salaries that Auber commits to pay, what is the actual payroll cost to the company?
(d) Discuss any other costs, direct or indirect, that you think would add to the company's costs of having employees.
Solution to your problem is provided in a separate excel file attached herewith.It contains the ...
This solution answers various questions regarding payroll tax entries in Excel.
Classifying Liabilities and Preparing Payroll Entries
This formatted MS Excel spreadsheet contains illustrations on the classification of assets, liabilities, and the preparation of payroll entries.View Full Posting Details