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Sarasota Limited began operations on January 2, 2016. The company employs 13 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows:
Actual Hourly
Wage RateVacation Days Used
by Each EmployeeSick Days Used
by Each Employee201620172016201720162017$21$2201045
Sarasota Limited has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when they are earned and to accrue sick pay when it is earned. For the purpose of this question, ignore any tax, CPP, and EI deductions when making payments to the employees.
What is the liability for sick pay
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