Given the rule that for non$-$cash gifts and awards provided to employees, the first

$$500$ per annum is not taxable, and that every $5$ years, employee is allowed up to

$$500$ in long$-$service award $($non$-$cash only$),$ assess Jim's position for May $2022.$

He was given a laptop for $$350+$ an iPad for $$200+$ a plece of expensive

luggage valued at $$150.$ Additionally, he was also awarded an expensive watch

valued at $$400$ in recognition of his $5-$year service.

Note the annual award and the long service award cannot be mixed.

Respond True or False to the following statements.

The amount of his non$-$cash

taxable annual benefit is

$$200.$

The taxable amount of his

long service award is $$400.$

Both of the non$-$cash

benefits will be subject CPP$.$

El and income tax

deductions.

All cash gifts are fully

taxable, as well as insurable

and pensionable