1.Indicate whether the following benefits are taxable or non-taxable to the employee

Benefits Taxable Non-Taxable

Employer-paid provincial health

insurance premium for BC Employees

Personal income tax preparation provided

to senior management employees

Job placement counselling for an employee

whose employment is being terminated

Indicate whether the following would be considered taxable or not.

If the gift or award is considered taxable, give the taxable amount.

Assume all costs include applicable taxes

An Employee receives

A $600 watch for a birthday gift

Two gifts totalling $500 and an award

for exceeding safety standards worth $400

Three gifts worth $300, $150 and $100

A $100 gift certificate from Jackson's Jewellers

2.Edna Robson is a marketing manager for Blossom Cosmetics in Victoria BC. She earns $45,000.00 annually and is paid on a semi-monthly basis.

Blossom Cosmetics provides the following benefits

Group term life Insurance of two times her annual salary (the premium rate is $0.90 per $ 1,000 of coverage)

A company- leased automobile (the company estimates her pay period taxable benefits based on last year's taxable benefits of $ 4,440.00)

3.Jasmine Forsythe works for a retail clothing chain in Vancouver. She is a supervisor in the Human Resource Department and earns $39,000 annually, paid on a bi-weekly basis.

Jasmine's employment contract requires her to travel to other store locations to conduct interviews. She must use her own vehicle, and in turn, she receives an annual car allowance of $3,250 paid on a pay period basis. As Jasmine is not required to report to the company the business kilometres she drives. And she is paid a flat dollar amount, the car allowance is taxable, subject to statutory deductions.

All management employees must purchase and wear the company's clothing while working; employees submit their receipts and are reimbursed through payroll. Jasmine has submitted her receipts for $ 285 including taxes, for reimbursement on the next pay. As this clothing is not a uniform, nor is it required for safety purposes, the clothing allowance is taxable, subject to statutory deductions.

Determine-

Gross Earnings

Non -Cash Taxable benefits

CPP

Employee Insurance