Alpina Consulting is a proprietorship run by Aniol Alpina. She established her business in 2010 and over the years the work has grown and she now has two full time employees. Alpina Consulting is located at 123 Vancouver Street in Victoria V8V 1W1, and the business number is 50057 4399 and Aniols SIN number is 527 000 509.

It is now February 2021 and you have recently been hired by Aniol Alpina to complete the T4s for the 2020 year. Alpina Consulting has only one payroll account. She completed the payroll herself during the year, but needs assistance with the T4s as she is unsure how to enter the taxable benefits.

Aniol provides you with the following information about her employees:

Sally Suschinsky (SIN 123 456 782) is her general manager and senior consultant and earns a salary of $125,000 per year. Sally lives at 852 Gordon Head Road in Victoria V8V 2W2.

In addition to the salary, Alpina Consulting paid for a term life insurance policy at $1,900 per year. A couple of years ago, Sally negotiated that Alpina Consulting also pay into a defined contribution pension plan (a type of RPP) for Sally (Plan #1234567). Both Sally and Aniol contributed $8,800 each in 2020 to the plan. Aniol informs you that the pension adjustment to be recorded this year is $17,600.

Alpina Consulting also pays the professional dues for Sally, the dues paid in 2020 were $1,500. Tax deducted from Sallys paycheques during the year was $27,120.

The other employee Ed Esquerra (SIN 222 333 445) is a consultant and was paid a salary of $75,000 and had $22,000 in income tax deducted from his paycheque. Ed lives at 999 Government Street in Victoria V8V 0X0.

Ed does not pay into the pension plan, nor does he have any professional dues.

Both employees had the maximum CPP and EI withheld from their paycheques. For the 2020 year, that information is as follows:

CPP

Maximum Earnings $58,700.00 Maximum Withholdings 2,898.00

EI

$54,200.00 856.36

As well as the $10,000 Christmas bonus (already included in the gross payroll amounts noted), Alpina Consulting gave Christmas gifts to all employees. Sally received a $2,000 Amazon gift card and Ed received a 3-D printer valued at $400.

T4 Project ACCT 240 2022W

Alpina Consulting supplied a vehicle for employees Ed to use. The vehicle originally cost $52,000. Ed drove the vehicle 48,500 kilometres during the year, 30,000 of which were personal. Ed had $5,000 taken off of his paycheque during the year to partially pay back operating expenses.

Sally likes to use her own vehicle and therefore receives an automobile allowance of $650 per month instead. Both Ed and Sally are required under contract to travel to locations that were not their normal place of business to perform their employment duties. Sally is not required to be away from the municipality for more than 12 hours. She is responsible for her own expenses on her vehicle.

On July 1, Ed approached Aniol for an employee loan. Alpina Consulting gave him $18,000 and he is paying interest at 1% per year. You have checked and the prescribed rate for each quarter of the year was 3% (use number of days in your calculation for the loan interest benefit, there are 366 days in 2020).

All salary payments are made on the last day of each month and are evenly spread throughout the year. All taxable benefits are not included in monthly paycheques, but are included in the final paycheque in December.

Aniol remitted $62,900 in payroll remittances for 2020. Aniol has indicated she prefer you were the contact person for any questions from CRA with respect to the payroll. The office contact number is 250-555-1212.

Required Submission:

1. Create a word document and save it as LASTNAME_T4Project2022W

2. Label your word document with your name and student number on the first two

lines.

3. Take screen shots of the following**

a. T4 for Sally b. T4 for Ed

c. T4 Summary