Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prince Packaging has offices throughout Nova Scotia. John Frame, Social Insurance Number 222-555- 777, had worked for the company in their Antigonish office from
Prince Packaging has offices throughout Nova Scotia. John Frame, Social Insurance Number 222-555- 777, had worked for the company in their Antigonish office from July 1982 until his employment was terminated in November of this year. When his employment was terminated, he was fully vested in the company's defined contribution registered pension plan, which he joined in 1984. Upon termination, John received a retiring allowance of $86,000.00. John had his employer transfer the entire eligible amount to a RRSP and took the non-eligible amount in cash. Calculate the eligible and non-eligible portions of John's retiring allowance as well as the income tax withheld on the amount received in cash. Include these amounts when completing John's T4 slip. The $101,356.00 income tax shown does not include the amount withheld on the retiring allowance.
Step by Step Solution
★★★★★
3.42 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the eligible and noneligible portions of Johns retiring allowance we need to determine ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started