Spieth Company employees had the following earnings records at the close of the November 30 payroll period.
Spieth Company's payroll taxes expense for each employee include: 4.95% CPP on the annual pensionable earnings 50,100 ($55,900 maximum with the first $3,500 exempt), and 1.4 times the employees EI rate of 1.66% paid to a maximum of $51,700 annually. As well, $300 in federal and provincial income taxes will be deducted from the employees' gross pay for the week. Prepare the journal entries to record:(a) The payroll accrual.(b) The employer payroll tax expense.
Note that R. Scott would have already paid the maximum CPP and EI for the year

Question

Spieth Company employees had the following earnings records at the close of the November 30 payroll period.
  Spieth Company's payroll taxes expense for each employee include: 4.95% CPP on the annual pensionable earnings 50,100 ($55,900 maximum with the first $3,500 exempt), and 1.4 times the employees EI rate of 1.66% paid to a maximum of $51,700 annually. As well, $300 in federal and provincial income taxes will be deducted from the employees' gross pay for the week. Prepare the journal entries to record:(a) The payroll accrual.(b) The employer payroll tax expense.
  Note that R. Scott would have already paid the maximum CPP and EI for the year

Quizplus · Accepted Answer

The Answer of Spieth Company employees had the following earnings records at the close of the November 30 payroll period.
  Spieth Company's payroll taxes expense for each employee include: 4.95% CPP on the annual pensionable earnings 50,100 ($55,900 maximum with the first $3,500 exempt), and 1.4 times the employees EI rate of 1.66% paid to a maximum of $51,700 annually. As well, $300 in federal and provincial income taxes will be deducted from the employees' gross pay for the week. Prepare the journal entries to record:(a) The payroll accrual.(b) The employer payroll tax expense.
  Note that R. Scott would have already paid the maximum CPP and EI for the year

Spieth Company Employees Had the Following Earnings Records at the Close