Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following details, determine the minimum Net Employment Income the Taxpayer needs to report for the 2017 Tax Year: (show all calculation and explanations)

image text in transcribed
image text in transcribed
Given the following details, determine the minimum Net Employment Income the Taxpayer needs to report for the 2017 Tax Year: (show all calculation and explanations) Gross Salary Sales Commission Income Cash Performance Bonus $89,319 4.396 8.932 $102,647 Federal Income Tax Withheld at Source CPP Contributions Withheld at Source El Insurance Premiums Withheld at Source Employee's RPP Contributions Employee's Contributions to Group Disability Plan Employee's Repayment to Employer for Work Vehicle Employee's Union Dues Net Paycheque for Year $25,662 2,480 931 5,132 159 693 1,340 36,397 S66,250 Other Additional Information: Taxpayer was provided with a work vehicle that was used for both personal and work driving. The derails of the vehicle ise are as follows: Original Cost of Vehicle to Employer: $29,602 FMV of Vehicle at December 31, 2017 $27,147 NBV of Vehicle at December 31, 2017: $20.222 # of Months Vehicle Available: 12 of Personal KM in Year: 9.222 # of Work KM in Year: 16,977 FMV = Far Market Value if sold to 3rd Party NBV - Net Book Value per Accounting Records ) Taxpayer was hospitalized during the year. The details are as follows: Total Disability Benefits Rec'c in Year $5,314 Cumulative Contributions to Plan by Employer: $1,000 Cumulative Contributions to Plan by Employee $1,559 i) Taxpayer was hospitalized during the year. The details are as follows: Total Disability Benefits Rec'd in Year: $5,314 Cumulative Contributions to Plan by Employer: $1,000 Cumulative Contributions to Plan by Employee: $1.559 ($159) * Figure includes the amount deducted from 2017 paycheque ii) Taxpayer was required to pay annual professional dues of: The employer did not reimburse the employee for this. $685 iv) Employer contributed $3,000 towards employee's RPP. v) A bonus of $7,000 was declared on December 20, 2017 by the employer and wil be paid to the employee on January 7, 2018. vi) On January 1, 2017 Ms. Marsh received a loan from her employer n Amount of the Loan 1600 Interest Rate on the loan 1% Prescribed Interest Rate 21,22,23 & Q4 8% vii) Other out of pocket (not reimbursed by employer) expenses incurred by Taxpayer and requird by the Employer under the Employment Contract during year: a) Total Square Footage of Personal House: Total Square Footage of Home Office: 2,000 177 $4,500 $15,772 $3,640 $1,315 $6,500 Home Property Taxes: Home Mortgage Interest: Home Utaities: Home Insurance: Home Kitchen Renovation: b) Advertising Costs: Total Cost of Meals on Road: Costs to lease Equipment used for Work: Bought Computer for Work: $1,923 $1,138 $858 $1,082 Given the following details, determine the minimum Net Employment Income the Taxpayer needs to report for the 2017 Tax Year: (show all calculation and explanations) Gross Salary Sales Commission Income Cash Performance Bonus $89,319 4.396 8.932 $102,647 Federal Income Tax Withheld at Source CPP Contributions Withheld at Source El Insurance Premiums Withheld at Source Employee's RPP Contributions Employee's Contributions to Group Disability Plan Employee's Repayment to Employer for Work Vehicle Employee's Union Dues Net Paycheque for Year $25,662 2,480 931 5,132 159 693 1,340 36,397 S66,250 Other Additional Information: Taxpayer was provided with a work vehicle that was used for both personal and work driving. The derails of the vehicle ise are as follows: Original Cost of Vehicle to Employer: $29,602 FMV of Vehicle at December 31, 2017 $27,147 NBV of Vehicle at December 31, 2017: $20.222 # of Months Vehicle Available: 12 of Personal KM in Year: 9.222 # of Work KM in Year: 16,977 FMV = Far Market Value if sold to 3rd Party NBV - Net Book Value per Accounting Records ) Taxpayer was hospitalized during the year. The details are as follows: Total Disability Benefits Rec'c in Year $5,314 Cumulative Contributions to Plan by Employer: $1,000 Cumulative Contributions to Plan by Employee $1,559 i) Taxpayer was hospitalized during the year. The details are as follows: Total Disability Benefits Rec'd in Year: $5,314 Cumulative Contributions to Plan by Employer: $1,000 Cumulative Contributions to Plan by Employee: $1.559 ($159) * Figure includes the amount deducted from 2017 paycheque ii) Taxpayer was required to pay annual professional dues of: The employer did not reimburse the employee for this. $685 iv) Employer contributed $3,000 towards employee's RPP. v) A bonus of $7,000 was declared on December 20, 2017 by the employer and wil be paid to the employee on January 7, 2018. vi) On January 1, 2017 Ms. Marsh received a loan from her employer n Amount of the Loan 1600 Interest Rate on the loan 1% Prescribed Interest Rate 21,22,23 & Q4 8% vii) Other out of pocket (not reimbursed by employer) expenses incurred by Taxpayer and requird by the Employer under the Employment Contract during year: a) Total Square Footage of Personal House: Total Square Footage of Home Office: 2,000 177 $4,500 $15,772 $3,640 $1,315 $6,500 Home Property Taxes: Home Mortgage Interest: Home Utaities: Home Insurance: Home Kitchen Renovation: b) Advertising Costs: Total Cost of Meals on Road: Costs to lease Equipment used for Work: Bought Computer for Work: $1,923 $1,138 $858 $1,082

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Accounting

Authors: Frederick D. S. Choi, Gary K. Meek

7th Edition

0136111475, 9780136111474

More Books

Students also viewed these Accounting questions

Question

How do you communicate intimacy nonverbally?

Answered: 1 week ago