Question

Boxcom Company had a total bi-weekly payroll of $ 90,000. The entire payroll was subject to CPP (4.95%), EI (1.66%), and income tax withholdings of $ 11,880. Union dues of $ 1,125 and Health insurance premiums of $ 2,850 were also withheld. Boxcom will match employee CPP and 1.4 times employees EI

1. Prepare the journal entries to record the employee wages/salaries and payroll deductions 4.5 m
2. Prepare the journal entries to record the employer payroll contributions   2 m
3. Prepare the journal entries to record the remittance to the Receiver General (Canada Revenue Agency) 2.5 m

Answer 1

1. Salary Expense DR $ 90000

Income Tax Payable $ 11880

Union Dues Payable $1125

Health Insurance Premium Payable $2850

C P P Payable(Employee Share) $4455

E I Payable(Employee Share)   $1494

Salary Payable   $ 68196

( Due entry for salary )

2.

Payroll Expense DR   $10431

    C P P Payable(Employer Share) $4455

   E I Payable(Employer Share)   $5976

( Employer contribution towards CPP & EI)

3.

C P P Payable(Employer Share) DR $4455

E I Payable(Employer Share) DR $5976

C P P Payable(Employee Share) DR   $4455

E I Payable(Employee Share)   DR $1494

Canada Revenue Agency $16380

(CPP & EI remitted )