Determine the cost of employing Walker for the year

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Question - Debbie Walker earns a salary of $4,000 per month during the year. Employment Insurance taxes (EI) are 1.88% of the first $49,500 in earnings. The Canadian Pension Plan (CPP) rate is 4.95% of the first $53,600 in earnings, less a basic annual exemption of $3,500. During the year, $23,000 was withheld for income taxes.

Instructions -

a) Journal entry summarizing the payment of Walker's total salary during the year.

b) Journal entry summarizing the employer's payroll tax expense on Walker's salary for the year.

c) Determine the cost of employing Walker for the year.

Reference no: EM132481903

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