1 Payroll Calculation You have recently been hired as a Controller for a company that employs 60 staff. Your new company is called Can Do Contractors Inc. Can Do Contractors Inc.’s previous controller left in a hurry. You see that the previous Controller had access to the bank account and could sign Company Cheques with their own. They also possessed a company credit card as well as full access to the accounting software. One of your first tasks is to check the new Payroll Software. To do this, you pull an employee payment record to check manually against the Payroll Software. If your calculation = the new Payroll Software, you will have a level of confidence in the new system. You pull Bob’s payroll information for the period: Bob earns $55,000 per year and is paid on a semi-monthly pay schedule. Bob enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6% vacation pay on each payment. This pay cycle included 15 hours of approved overtime worked over the normal 40-hour work week, and a reimbursement for travel expenses for $434.20. The employee contributes 5% of their regular wages to a Registered Retirement Savings Plan each pay cycle. REQUIRED: Calculate Bob’s Gross Earnings. For this calculation, include Travel Expenses Reimbursements in Gross Earnings (you will note that most Payroll Software systems will exclude Reimbursements from Gross Earnings as treat as a separated line item). Bobs Gross Earnings items [Template] Regular Overtime Pay Vacation PAID Bonus/Commission/Shift Premium Allowances - Taxable Reimbursements Gross Earnings [Note Templates will have additional rows not necessarily used for the Question, it is a "catch all"] You can cut & paste this into Excel or Calculate on a Calculator. REQUIRED: Calculate Bob’s CPP contribution. Bob’s PENSIONABLE EARNINGS AKA CPP Contributory EARNINGS [Template] ] Start Point: Gross Earnings Less Nontaxable Allowances Less Severance or Retirement Less Nontaxable Allowances - Safety Allowance Less Safety Allowance Less Reimbursements Add Taxable Benefits Plus Employee Taxable Benefits Plus cell Phone Plus Car Allowance = Pensionable Earnings - CPP Contribution Pensionable Earnings - CPP Contribution Rate (use 2022) You can cut & paste this into Excel or Calculate on a Calculator 2.2 Payroll Segregation of Duties MEMO Payroll is where most of the fraudulent activity occurs in businesses. Accountants use Segregation of Duties to safeguard company assets. REQUIRED: Research Segregation of Duties and prepare a Memo to your company executive. In the Memo you will: 1) Give a definition/ describe Segregation of Duties (SOD). 2) List down 3 types of SOD. 3) Provide a solution for the Red Flag. Is it okay to have one person that has access to bank account, single signee of the Cheque Book and control of Payroll? - discussion should be at least 3 lines. In New type in Memo into the search box to find a Memo template. PART 3: PAYROLL & SOFTWARE 3.1 Add New Employee to Payroll Software You must prepare payroll for a new employee, Corwin Hart, who joined 2 weeks ago. Following best practice, you sent Corwin a TD1 to fill out and received the below completed TD1, which you will use to set him up in your QuickBooks Payroll. Corwin gets paid a rate of $30 an hour. In the payroll period, Corwin worked for 35 hours. The pay period is January 1, 2023, to January 15, 2023. The payroll date is the 30th of January. Use Default Tax rates for Provincial and Federal Income Tax. Your Company pays employees bi-monthly. Vacation pay of 4% is accrued onto the employee’s payroll file. When the employee wants to take vacation, they can draw down from the saved Vacation hours. REQUIRED: Prepare payroll for Corwin. There are 2 options for QuickBooks Payroll – choose any 1. You will have to add a new employee in Employee Center, and add the details provided + information from the TD1. 1) Use QuickBooks Online to add the Employee payroll information, process Payroll and submit or pdf pay cheque for Corwin. 2) Use the CRA online Payroll Calculation PDOC: Payroll Deductions Online Calculator - Canada.ca. Copy the PDOC calculation page and Paste into the Capstone Document.