An employee receives a bi-weekly gross salary of $2,000. The employee's deductions include income tax of $218, CPP of $92, EI of $37, and union dues of $50. The employer's share of the deductions include CPP of $92 and EI of $52. What is the total amount of Salaries and Employee Benefits Expense that XYZ Corp. would record on its income statement as a result of the employee's bi-weekly salary?
A) $1,653
B) $2,000
C) $2,144
D) $2,347

Question

Quizplus · Accepted Answer

Bi-weekly gross salary = $2,000
Employee deductions:
Income tax = $218
CPP = $92
EI = $37
Union Dues = $50
Total employee deductions = $397
Employer deductions:
CPP = $92
EI = $52
Total employer deductions = $144
Net pay = Gross Salary - Employee deductions = $2,000 - $397 = $1,603
Total Salaries and Employee Benefits Expense = Gross salary + Employer deductions = $2,000 + $144 = $2,144. Therefore, the correct answer is (C).

An Employee Receives a Bi-Weekly Gross Salary of $2,000