Question
Angus Og is an accountant for a major Canadian retailer, His gross salary for 2022 was $55,600. For the 2022 taxation year, his employer deducted
Angus Og is an accountant for a major Canadian retailer, His gross salary for 2022 was $55,600. For the 2022 taxation year, his employer deducted the following amounts from his income:
Federal Income Tax (FIT) $11,200
CPP $1,990
EI $720
Registered pension plan contributions $1,800
Charitable donation to United way $400
Union dues $500.
His employer made a $1,800 matching contribution to his registered pension plan. It also contributed 200 towards the Group Disability Plan and paid $600 towards Mr. Ogs life insurance policy.
Here is other information relating to Mr. Ogs 2022 employment:
- During 2022, he was provided with a company owned car. The cost was $32,000 (ignore all taxes). The actual operating costs for the car, which were paid by the employer, were $4,800. The car was available to him for 9 months and he drove it a total of 22,000 kms, of which 19,000 related to his employment. He reimbursed his employer $100 per month for his personal use of the car.
- He was hospitalized for one month. As a result, he received $2,500 in benefits from the Disability Plan. Mr. Og paid $175 in contributions to the plan in 2011 and another $175 in 2012.
- The company reimbursed him $500 for an advanced IFRS course and also paid $5,000 for a vacation for him and his family in Florida.
- On July 1, 2022, his employer lent his $50,000. The loan requires annual interest payments at 2%. The CRA prescribed rate while the loan was outstanding was 5%. The loan was not repaid during the year.
- The employer provides all of its employees with a 15% discount on merchandise bought from its stores. During 2022, the amount of the discount that Mr. Og received was $275.
- The company was very pleased with Mr. Ogs performance in 2012 and declared a $10,000 bonus to him on December 15, 2022. It will be paid on January 15, 2023.
- The company paid $350 for a wine appreciation course held at Algonquin College.
- The employer paid $1,200 for Mr. Ogs membership in the exclusive Rideau Club. The employer expects Mr. Og to entertain customers and the auditors at the club.
Required: calculate the amount of employment income that will appear on Mr. Ogs 2022 T-4.
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