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  3. elyctric company reports a $2,850,000 monthly payr

Elyctric Company reports a $2,850,000 monthly payroll. Payroll income taxes average 20% for federal income...

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Accounting

Elyctric Company reports a $2,850,000 monthly payroll. Payroll income taxes average 20% for federal income taxes. The company is also responsible for federal unemployment taxes. The federal unemployment tax rate is 1.66% with a maximum annual deduction of 858.22. The employer's obligation for EI is 1.4 times the amount of the employee deduction. Payroll for employees who have exceeded the maximum annual deduction was $2,140,000. A CPP premium of 4.95% is charged to both the employee and employer, up to an annual maximum of $2,593.80 per employee. Payroll for employees who have exceeded the income base for the CPP is $247,000. Employees are also subject to a payment of 1% of gross earnings for union dues. REQUIRED:

1. Prepare the journal entry to record the monthly payroll.

2. Prepare the entry to record the Elyctric's payroll tax expense for the monthly payroll.

3. Prepare the journal entry to pay the liabilities for the accrued salaries.

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