Questions Assignment 2 Instructions 50 Marks Student Names

Questionsassignment 2 Instructions50 Marksstudent Namesthe Objec

The objective of this assignment, is to process a complete payroll cycle for a small company, including all year-end reporting and accounting entries. Prepare your assignment in the templated pages provided by 'tab' below … (Register / Payroll Journal) SUBMIT THIS ASSIGNMENT IN THE DROPBOX BY THE DUE DATE WITH ALL OF YOUR ANSWERS INPUT INTO THE TEMPLATES PROVIDED! Supporting Calculations MUST be Attached to this Assignment! Mark Breakdown 1) Complete the Payroll Register for the FULL TAX YEAR Ending December 31, Marks 2) Prepare the T4's for Worker's #1 & #10 ONLY, due February 28, 2014 (T-Slip Forms attached) 6 Marks 3) Complete the T4 Summary for ALL employees (Note: CRA Statements report that only $146,387.54 was remitted to date) 4 Marks 4) Payroll Accounting: In journal entry format, record the following for the year (in total); 8 Marks a) salary/wages & employee withholdings b) employer portion of statutory deductions & employee benefits c) cash payments for a & b above d) EHT & WSIB Accruals (see #5 & #6 below) e) Vacation Accrual & Reversal (see #7 below) On the template (in the box provided) input & detail your calculation for Total Payroll Costs that the employer recorded for the year 5) ABC is a 'Private Employer', subject to an EHT levy.

Calculate the payroll base by which the levy would be calculated; 8 Marks Prepare the 'year-end accrual' to record the levy owing (#4 d above) Prepare a schedule of payments, assuming this employer makes monthly payments; attach it to this assignment (See Lesson #7) Prepare the 'annual return'; attach it to this assignment 6) ABC is in the 'Paper Products' industry, subject to WSIB premiums. Calculate the payroll base by which the premium would be calculated; 6 Marks Prepare the 'year-end accrual' to record the premium owing (#4 d above) Prepare the 'reconciliation statement'; attach it to this assignment 7) Challenge Questions - Using the T4, exampled in Lesson #6, determine and report the Pension Adjustment for Worker's #1 & # Marks Determine the 'vacationable earnings' for Workers #5 - #10 and then calculate and journalize the total Vacation Accrual outstanding 3 Marks for the year. In addition, assuming that each worker took one week's vacation within the year, journalize the adjustment to the accrual. Register Template ABC Private Paper Products Co. - 2013 YTD Payroll Register Note additional information below; STUDENT NAME(S): BN RP001 Benefits: Total: Source Deductions: Other Deductions: Employee - SIN# Wages / Hours 'Work Related' Yearly Registered Pension Gross Fed & Prov Salary Worked per Yearly Taxable Car Plan Contributions Pay CPP EI Income Tax = RPP Medical Net Pay Pay Period Cash Bonuses Allowances Rate @ 22% Worker $15. $0.00 $0.00 $838.24 $16,764.80 $656.61 $315.18 $3,688.26 $838.24 $5,850.00 $5,416.52 Worker $15. $0.00 $0.00 $838.24 $16,764.80 $656.61 $315.18 $3,688.26 $838.24 $5,850.00 $5,416.52 Worker $15. $0.00 $0.00 $838.24 $16,764.80 $656.61 $315.18 $3,688.26 $838.24 $5,850.00 $5,416.52 Worker $15. $0.00 $0.00 $838.24 $16,764.80 $656.61 $315.18 $3,688.26 $838.24 $5,850.00 $5,416.52 Worker $17. $1,000.00 $0.00 $2,208.86 $45,177.25 $2,063.02 $849.33 $9,939.00 $2,208.86 $11,700.00 $18,417.04 Worker $17. $1,000.00 $0.00 $2,208.86 $45,177.25 $2,063.02 $849.33 $9,939.00 $2,208.86 $11,700.00 $18,417.04 Worker $17. $1,000.00 $0.00 $2,208.86 $45,177.25 $2,063.02 $849.33 $9,939.00 $2,208.86 $11,700.00 $18,417.04 Worker $85, $7,500.00 $5,000.00 $4,250.00 $97,500.00 $2,356.20 $891.12 $21,450.00 $4,250.00 $11,700.00 $56,852.68 Worker $85, $7,500.00 $5,000.00 $4,250.00 $97,500.00 $2,356.20 $891.12 $21,450.00 $4,250.00 $11,700.00 $56,852.68 Worker $85, $7,500.00 $5,000.00 $4,250.00 $97,500.00 $2,356.20 $891.12 $21,450.00 $4,250.00 $11,700.00 $56,852.68 $22,729.55 $495,090.95 $15,884.10 $6,482.07 $108,920.01 $22,729.55 $93,600.00 $247,475.22 Additional Information: - the pay frequency is bi-weekly (provide annual figures in the register) - medical plan, paid by workers only, is $45 per pay Private Employer 5) EHT Levy Base = $45,090.95 Vacationable Earnings (ATTACH DETAIL CALC'S): Worker #1 - the RPP plan is a 'contributory plan' with equal matching - employer contributions to the RPP plan are equal to Input Payroll Base which your calculations will be BASED on! Pension Adjustments: 5% of wages/salary, paid vacation & overtime only Total Payroll Costs (ATTACH DETAIL CALC'S): - car allowances & bonuses are paid bi-weekly with regular earnings Industry Code #) WSIB Levy Base = $452,190.95 Worker #10 - overtime is paid for hours worked beyond 44 per week - 4% vacation is paid for workers 1 to 4, every pay period - vacation for workers 5 to 10 is 'accrued' at three weeks IBM: This is the gross amount that EHT will be calculated upon IBM: This is the gross amount that WSIB will be calculated upon Payroll Journal a) salary/wages & employee withholdings STUDENT NAME(S): b) employer portion of statutory deductions & employee benefits c) cash payments for a & b above PAYROLL JOURNAL: d) employer & employee statutory deductions Journal Entries e) EHT & WSIB Accruals (see #5 & #6 below) f) Vacation Accrual & Reversal (see #7 below)

Paper For Above instruction

This comprehensive payroll processing assignment requires a detailed understanding of payroll cycle management, year-end reporting, and related accounting entries. The task involves creating a complete payroll register, preparing T4 slips for specific employees, summarizing total remitted amounts, and recording payroll accounting entries for a small company's fiscal year, specifically ending December 31.

The first component emphasizes constructing an accurate Payroll Register covering all payroll months within the year, reflecting gross wages, deductions, benefits, and net pay for each employee. This register serves as the foundational document for subsequent reporting and accounting activities, ensuring compliance with tax regulations and company policies.

Next, the preparation of T4 slips for select employees (Workers #1 & #10) encompasses verifying earnings, deductions, and employer contributions, to fulfill statutory requirement deadlines (February 28, 2014). The T4 summary consolidates data across the entire workforce, highlighting the total remittances made to CRA ($146,387.54), and serves as a critical control document for payroll accuracy and tax reporting.

The payroll accounting section requires journal entries summarizing the year's total payroll expenses. This includes recording wages payable, employee withholdings, employer statutory contributions such as Canada Pension Plan (CPP), Employment Insurance (EI), and other employee benefits, as well as cash disbursements for wages and deductions. Additionally, employer obligations such as Employment Hours Tax (EHT), Workplace Safety and Insurance Board (WSIB) premiums, and vacation accruals must be recognized and journalized correctly to reflect legal liabilities and payroll expenses.

Specific attention should be given to calculating and recording year-end accruals for EHT and WSIB premiums, based on the bases provided. These include schedules of payments, assuming monthly remittances, and the preparation of annual returns for taxing authorities. The assignment also entails computing payroll bases for EHT and WSIB, considering factors like overtime, vacation pay, and industry-specific premiums based on gross payroll amounts.

Additional challenge questions involve determining the Pension Adjustments for individual workers based on prescribed criteria, computing vacationable earnings, and journalizing vacant accruals, including adjustments for workers who took vacations during the year. These computations must be meticulous, using the detailed data and formulas provided.

Finally, the task requires creating detailed journal entries for all payroll transactions, including salary/wages, statutory deductions, employer contributions, and statutory remittances. The entries should accurately reflect the company's payroll costs, liabilities, and remittances, following standard accounting principles and ensuring compliance with legislative requirements.

References

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