Reference no: EM133188518

Question - The following is a payroll sheet for Sandhill Golf Corporation for the first week of November 2020. The EI rate is 1.66% and the maximum annual deduction per employee is $858.22. The employer's obligation for EI is 1.4 times the amount of the employee deduction. Assume a 15% income tax rate for all employees, and a 4.95% CPP premium charged to both the employee and employer, up to an annual maximum of $2,593.80 per employee. Union dues are 1% of earnings. Sandhill is a private corporation following ASPE.

Required -

Part 1 - Complete the payroll sheet and prepare the necessary entry to record the payment of the payroll.

Part 2 - Prepare the entry to record the employer's payroll tax expense.

Part 3 - Prepare the entries to record the payment of the payroll liabilities (1) to the Receiver General for Canada and (2) to the employees' union. Assume that Sandhill pays all payroll liabilities at the end of each month.

Part 4 - What is the total expense that Sandhill will report for the first week of November 2020 relative to employee compensation? What percentage of gross pay is the payroll tax expense? Will this percentage be a constant for all pay periods?