Chapter 11
Payroll
334
CPP PAYABLE
EI PAYABLE
INCOME TAXES PAYABLE
-
-
-
+
+
+
Employee deduction
Employer contribution
Employee deduction
Employer contribution
Remittance
Remittance
Remittance
84.60
118.44
203.04
208.31
208.31
416.62
416.62
203.04
802.90 802.90
Journal Page 1
Date
2015
account title and explanation Debit credit
Jan 31 CPP Payable
416.62
EI Payable
203.04
Income Taxes Payable
802.90
Cash
1,422.56
To remit deductions to the CRA
______________
FIGURE 11.7
Lastly, any amount owing to other institutions must be paid. The institution will have a schedule
for when payments must be sent in. In our example, the employer has a liability to pay union dues,
health insurance premiums and workers’ compensation premiums. Each of these liabilities will be
cleared out and payment will be sent to the union, the health insurance company and the workers’
compensation board.These transactions are shown in Figure 11.8.
Journal Page 1
Date
2015
account title and explanation Debit credit
Feb 28 Health Insurance Payable
30
Cash
30
To pay health insurance premiums
HEALTH INSURANCE PAYABLE
-
+
Remittance
15.00
15.00
30.00
30.00
Journal Page 1
Date
2015
account title and explanation Debit credit
Feb 28 Union Dues Payable
50
Cash
50
To pay union dues
UNION DUES PAYABLE
-
+
Remittance
50.00
50.00
Journal Page 1
Date
2015
account title and explanation Debit credit
Feb 28 Workers' Compensation Payable
22.50
Cash
22.50
To pay workers' compensation
WORKERS’COMPENSATION PAYABLE
-
+
Remittance
22.50
22.50
______________
FIGURE 11.8
