© 2013 McGraw-Hill Ryerson Limited. The entry to record the employer’s portion of CPP and EI for textbook Exhibit A.2 is: EI expense (1.4 x $65.22) CPP (or QPP) expense EI payable CPP (or QPP) payable Payroll Deductions Required of the Employer LO 3 1

© 2013 McGraw-Hill Ryerson Limited. The employees’ deductions and the employer’s portion are liabilities that must be remitted to the Receiver General. After recording the payroll, the payroll liability balances would be: EI PayableCPP (or QPP) Payable 65.22*156.43* 91.31**156.43** Hospital Ins. Payable Employees’ Inc. Tax Pay *478.55* * Employees’ contribution **Employer’s contribution Paying the Payroll Deductions LO 3 2

© 2013 McGraw-Hill Ryerson Limited. The entry to record the remittance to the Receiver General would be: EI Payable Employees’ Income Tax Payable CPP (or QPP) Payable Cash EI PayableCPP (or QPP) Payable Hospital Ins. Payable Employee Inc. Tax Pay Paying the Payroll Deductions LO 3 3

© 2013 McGraw-Hill Ryerson Limited. The entry to record the remittance for the hospital insurance premiums deducted would be: Employees’ Hospital Insurance Payable Cash Hospital Ins. Payable Paying the Payroll Deductions LO 3 4