E F 890 On January 2, 2021, Ms. Shirley Kantor accepted an offer of employment with Northern Enterprises Ltd. (NEL). Her salary for the year was $142,000. NEL withheld the following amounts from her earnings: Federal and Provincial Income Tax $32,500 Registered Pension Plan (RPP) Contributions (NEL Makes a matching contribution) 3.200 El Premiums CPP Contributions 3.166 United Way Donations 450 Professional Association Dues 1,250 Other Information: 1. For the year ending December 31, 2021, Shirley was awarded a bonus of $32,000 of this total, $25.000 was paid during 2021, with the remainder of $7.000 paid in January, 2022. 2. NEL provided Shirley with a car to be used for employment purposes and paid the operating costs for the year that totalled $8,100. The cost of the car was $39.550, including HST of $4,550. The car was available to Shirley throughout 2021. She drove a total of 63,000 kilometers. This included 8,000 kilometers of personal use and 55,000 for employment purposes. 3. In negotiating her new position with NEL, Shirley had asked for a $50,000 interest free loan as one of her benefits. NEL'S human resources department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of her 2022 salary as of November 1, 2021. 4. In her employment related travels, Shirley has accumulated over 100,000 Aeroplan points. During 2021, she and her partner Diane used 50,000 of these points for a weekend flight to New York City. If she had purchased them, the tickets would have cost a total of $940. The accumulation of the points is not considered an alternative means of remuneration. 9 4. In her employment related travels, Shirley has accumulated over 100.000 Acroplan points. During 2021, she and her partner Diane used 50,000 of these points for a weekend flight to New York City. If she had purchased them, the tickets would have costa total of $940. The accumulation of the points is not considered an alternative means of remuneration 0 5. NEL provided Shirley with the following additional benefits: Allowance for acquiring clothing $4.800 2 Squash Club membership (No Employment Related Use) 2,800 23 Financial Advisor Fees 1.200 6. Shirley was required by her employer to acquire a laptop computer to be used for employment purposes. At the beginning of 24 2021, she purchased a computer at a cost of $1,356, including HST of $256. During 2021, her expenditures for computer related supplies totalled $150 25 26 27 Required: Determine Shirley's 2021 employment income. 28 CALCULATIONS 29 Salary 30 Federal and Provincial Income Tax 31 RPP Contributions 32 El Premiums 33 CPP Contributions 34 United Way Donations 35 Professional Dues Professional Dues Bonus - Item 1 1 1 1 1 Car Benefit - Item 2 Salary Advance - Item 3 Aeroplan Points - Item 4 Allowance for Acquiring Clothing - Item 5 Squash Club Membership - Item 5 Financial Advisor Fees - Items Computer Related Supplies - Item 6 CCA on Computer 2021 Employment Income 1 1 1 1 20 2 1 Item 2 - The taxable benefit on the car would be calculated as follows: 19 30 Standby Charge 51 Operating Cost Benelit-Lesser of: 52 C D F H 1 How alice Squash Club Membership - Items Financial Advisor Fees - Items Computer Related Supplies - Item 6 CCA on Computer 2021 Employment Income 1 1 1 Item 2 - The taxable benefit on the car would be calculated as follows Standby Charge Operating Cost Benefit - Lesser of: 1 1 1 Total Automobile Bertit
