A. To determine the taxable employment income and the employment income tax liability of each employee, we need to consider the following factors:

1. Basic Salary: This is the regular salary paid to the employee.

2. Overtime Hours: The number of hours worked by the employee beyond their regular working hours.

3. Overtime Duration: The time period during which the overtime hours were worked.

4. Transport Allowance: Additional allowance provided to the employee for transportation expenses.

Based on the given information, we can calculate the taxable employment income and employment income tax liability for each employee as follows:

1. Abduljebber Mohammed:
   • Basic Salary: Br 4,200
   • Overtime Hours: 10
   • Overtime Duration: 6:00pm to 10:00pm
   • Transport Allowance: Br 1,000

   Taxable Employment Income = Basic Salary + Overtime Pay + Transport Allowance = 4,200 + (10 * Hourly Rate * Overtime Hours) + 1,000 = 4,200 + (10 * Hourly Rate * 4) + 1,000 = 4,200 + (10 * Hourly Rate * 4) + 1,000

   Employment Income Tax Liability = Taxable Employment Income * Tax Rate

2. Demissie Eniyew:
   • Basic Salary: Br 3,800
   • Overtime Hours: 16
   • Overtime Duration: 10:00pm to 6:00am
   • Transport Allowance: Br 500

   Taxable Employment Income = Basic Salary + Overtime Pay + Transport Allowance = 3,800 + (16 * Hourly Rate * Overtime Hours) + 500 = 3,800 + (16 * Hourly Rate * 8) + 500

   Employment Income Tax Liability = Taxable Employment Income * Tax Rate

3. Gezhahegn Meshesha:
   • Basic Salary: Br 1,600
   • Overtime Hours: 10
   • Overtime Duration: Weekly rest days
   • Transport Allowance: Br 500

   Taxable Employment Income = Basic Salary + Overtime Pay + Transport Allowance = 1,600 + (10 * Hourly Rate * Overtime Hours) + 500 = 1,600 + (10 * Hourly Rate * 4) + 500

   Employment Income Tax Liability = Taxable Employment Income * Tax Rate

B. To prepare the Employment Income Tax Declaration, we need to gather the necessary information for each employee and fill out the required forms. Demissie Eniyew will be the preparer, so they will be responsible for completing the declaration.

C. Line 20 of ERCA form 1103 is for reporting the total taxable employment income for the period. We need to sum up the taxable employment income for all employees and report it on this line.

Line 30 of ERCA form 1103 is for reporting the total employment income tax liability for the period. We need to sum up the employment income tax liability for all employees and report it on this line.

D. To account for employment income taxation, we need to make the following entries:

1. Debit: Salaries Expense Credit: Cash/Bank (for the payment of salaries)

2. Debit: Overtime Expense Credit: Cash/Bank (for the payment of overtime)

3. Debit: Transport Allowance Expense Credit: Cash/Bank (for the payment of transport allowance)

4. Debit: Pension Contribution Expense Credit: Cash/Bank (for the payment of pension contribution)

5. Debit: Employment Income Tax Expense Credit: Cash/Bank (for the payment of employment income tax)

These entries will ensure that the expenses related to employment income taxation are properly recorded in the accounting system.