Reference no: EM132776520
Question - Rippling Waters rents canoes and other water crafts to campers and hikers. On May 15, 2011, Rippling Waters prepared their semi-monthly payroll for their employees. The current CPP rate is 4.95%, the current EI rate is 1.78%, and the appropriate income tax rate is 20%. The employer pays half of the health care premium, and the employees pay the other half. Assume the employer contributes 100% towards the pension plan and 140% towards employment insurance. Payroll information for May 15, 2011 is listed below:
|
Employee
|
Total Hours
|
Hourly Rate
|
Health Care
|
|
M. Swift
|
87.5
|
$14.50
|
$18.00
|
|
S. Current
|
85.5
|
15.00
|
20.00
|
|
B. Wavey
|
73.5
|
13.50
|
14.00
|
Required -
a) Calculate gross and net pay for each employee?
b) Calculate the employer contributions?
c) Prepare the payroll journal entries for May 15, 2011 to record the salaries payable to the employees and accrue the employer contributions?
d) Prepare the entry to pay the employees on May 17, 2011?
e) Prepare the entry to pay the liability to the health insurance company on May 31, 2011?
f) Prepare the entry to pay the liabilities to the government on June 15, 2011?