Question
Freehold Foods, an Alberta organization, is preparing its year-end information slips.Lauriehad worked for the company in their Calgary office from July 1982 until her employment
Freehold Foods, an Alberta organization, is preparing its year-end information slips.Lauriehad worked for the company in their Calgary office from July 1982 until her employment was terminated last year. When her employment was terminated, she was fully vested in the company's defined contribution registered pension plan, which she joined in July 1984. Upon termination of employment,Lauriereceived a retiring allowance of$58,000.00.Lauriehad her employer transfer the entire eligible amount to a RRSP and took the non-eligible amount in cash.
Calculate the eligible and non-eligible portions ofLaurie's retiring allowance as well as the income tax withheld on the amount received in cash. Include these amounts when completingLaurie's T4 slip. The$27,760.00income tax shown on the year-end payroll register doesnotinclude the tax amount withheld on the retiring allowance.
CompleteLaurie's T4 slip using the information from the year-end payroll register below.
Note:The boxes in the Other Information area of the T4 must be completed in numerical order.
Item | Amount |
Regular earnings | $69,400.00 |
Vacation pay | $4,528.00 |
Bonus pay | $5,250.00 |
Overtime pay | $660.34 |
Taxable clothing allowance | $825.00 |
Wages in lieu of notice | $11,950.00 |
Retiring allowance | $58,000.00 |
CPP contributions | $3,499.80 |
EI premiums | $952.74 |
Income tax | $27,760.00 |
CPP pensionable earnings | $64,900.00 |
EI insurable earnings | $60,300.00 |
Union dues | $500.00 |
Charitable donations | $425.00 |
Employee contributions to the Registered Pension Plan | $1,250.00 |
Employer contributions to the Registered Pension Plan | $925.00 |
Registered Pension Plan number | 1234567 |
Loan interest non-cash taxable benefit | $1,639.85 |
Automobile non-cash taxable benefit | $2,036.49 |
Group term life insurance non-cash taxable benefit | $1,217.50 |
Accidental death and dismemberment non-cash taxable benefit | $31.25 |
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