The total payroll of Carbon Company for the month of October was $ 240,000, all subject to CPP deductions of 4.95% and EI deductions of 1.66%. As well, $ 60,000 in federal income taxes and $ 6,000 of union dues were withheld. The employer matches the CPP employee deductions and contributes 1.4 times the employee EI deductions. What amount should Carbon record as employer payroll tax expense for October?
A) $ 15,864.00
B) $ 17,457.60
C) $ 20,616.00
D) $ 77,457.60

Question

Quizplus · Accepted Answer

- Total payroll: $240,000
- CPP deductions: 4.95% of $240,000 = $11,880
- EI deductions: 1.66% of $240,000 = $3,984
- Federal income taxes withheld: $60,000
- Union dues withheld: $6,000

Total employee deductions: $11,880 + $3,984 + $60,000 + $6,000 = $81,864

- Employer matches CPP: 4.95% of $240,000 = $11,880
- Employer contributes 1.4 times EI deductions: 1.4 x $3,984 = $5,577.60

Total employer payroll tax expense: $11,880 + $5,577.60 = $17,457.60

Therefore, the answer is B) $17,457.60.

The Total Payroll of Carbon Company for the Month of October