do note there is incorrect information in Part 2 Part 2 1. Give one or more examples of permissible and not-permissible employment income deduction that would be surprising to most people. Exclude any COVID related measures. 2. Explain in your own words and with your own illustrations how employee allowances are taxed or not taxed. Your explanation should educate readers of the relevant tax legislation, common misconceptions or missed opportunities. 1.0 Question 1 Some permissible employment income deductions that people can take advantage of are the following. Tools for tradespeople, mechanics, apprentices, and forestry workers. If you are a fellow employee in the transportation industry, perhaps like a trucker. Then you can claim meals and lodging expenses. Some non-permissible employment income deductions include fees from cell phone or internet providers. These are non-permissible if you go over the contract's desired given amount. Another small non-permissible employment income deduction would be a meal that your boss may have provided for the workers as a reward for working overtime. 2.0 Question 2 If you as an employer are providing benefits for your employees, then you must follow the following 4 steps. Determine if the benefit is taxable, calculate the value of the benefit, calculate payroll deductions, file an information return. If you realize one of these steps does not apply to your case, then you move on to the next step. The following example will be regarding a cellular phone or other handheld communications device. If an employer were to own a cellphone and give it to their employee to further assist them with their work. The cellular phone or handheld device would not classify as a taxable benefit. For it to classify as a taxable benefit for the employee, the employer would have to reimburse the employee for the cellular or handheld device they have bought. A real-world example could be a walkie talkie used for a construction site. The employer requires the employee to get a walkie talkie device with their own money, then the employer will reimburse the employee, thus resulting in a taxable benefit. The following example will be about employees claiming certain employment expenses on income tax and benefit return. An example would be using your own car for business. The personal taxation of an automobile allowance is paid in three ways. First being, a reasonable per-kilometre allowance. Second being, flat rate allowance. Last one being combination of flat-rate and reasonable per-kilometre allowance. If your per-kilometre allowance is reasonable then the following should not be deducted, CPP contributions, EI premiums, or income tax. For an allowance to be reasonable and not taxable to you, the following conditions are required. The number of business kilometres that have been driven, 2020 allowance rate, and zero reimbursements from employers. You should keep a record on tracking business hours.