Determine the cost of employing walker for the year

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Reference no: EM133378875

Question: Paul Stroud earns a salary of $8,000 per month during the year. Employment Insurance taxes (EI) are 1.88% of the first $49,500 in earnings. (max. EI $930.60) The Canadian Pension Plan (CPP) rate is 4.95% of the first $53,600 in earnings (max. CPP $2,479.95), less a basic annual exemption of $3,500. During the year, $23,000 was withheld for income taxes.

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

b) Prepare a 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: EM133378875

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