a) 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.
i) Regular $3200
ii) Holiday Pay $250
iii) Group Life – Employer paid Taxable benefit $15
iv) 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 employer’s 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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