You have just spoken with a new tax client. Your client has asked you about the tax implications of an offer of employment received from a prospective company.
The company is publicly traded and has a year end of October 31st. The position is for VP of Marketing and has a start date of December 1st.
Complete the table based on the tax implications. For each item, match it to the “best” choice available. You can use some choices more than once.
| 1. |
Taxable = per 5(1) on a cash basis. |
| 2. |
Not taxable = exclusion per 6(1)(a)(i) |
| 3. |
Deductible = per 8(1)(m) |
| 4. |
Taxable = when received |
| 5. |
Taxable = no exclusion per 6(1)(b) |
| 6. |
Deductible = per s.62 (against employment income of new location) |
| 7. |
Taxable = per S2-F3-C2 |
| 8. |
Not taxable = per S2-F3-C2 |
| 9. |
Not deductible = eligible for medical expense credit (s.118.2(2)(q)) |
Complete the table based on the tax implications. For each item, match it to the “best” choice available. You can use some choices more than once.
|
Company provides a group health plan administered by Insurance Co. X, including glasses. Employee will pay about $x per month and the company will pay $y per month. The EMPLOYEE’S payment is: |
1? |
| Company has a defined contribution registered pension plan where the employee and the company each contribute 4% of her salary. The employer (company) contribution is: | 4? |
| Annual dues for a fitness club up to a cost of $x per year, primary for the EMPLOYER’S (company’s) benefit: | |
| Annual dues for a fitness club up to a cost of $x per year, primary for the EMPLOYEE’S benefit: | |
| Company provides a group health plan administered by Insurance Co. X, including glasses. Employee will pay about $x per month and the company will pay $y per month. The EMPLOYER’S (company’s) payment is: | |
| Annual salary, payable by direct deposit on a monthly basis. | |
| Bonus payable based on the year-end results of the company. | |
| Registered pension plan PAYMENTS. i.e. receive payments from the RPP. | |
| Company has a defined contribution registered pension plan where the employee and the company each contribute 4% of her salary. Employee contribution is: | |
| She will have to move to another city for this position. The company will pay her an allowance to cover her moving expenses. | |
| Actual moving expenses |
