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Payroll Tax Entries in Excel

(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.

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This solution answers various questions regarding payroll tax entries in Excel.