Q1 - Employment Benefits = 9 marks

The taxpayer provided you with the following information related to their employment.

Required: For each item, select whether the item was Taxable or Not Taxable (from the dropdown box - highlighted in yellow), and identify the section number from the ITA to support your conclusion (from the dropdown box - highlighted in yellow).

Instructions:

1) Click on the individual cell to activate the dropdown arrow.

2) Make your selection given the options in the dropdown list.

3) Use your notes, text, ITA, and the Employer Guide 4130 as research tools.

Employment income (received in 2020)

$45,000

Bonus ($1,000 received in December 2020)

$1,000

Bonus ($5,000 received in January 2021)

$5,000

Employer-paid the following items:

Employer contribution to company registered pension plan

$2,500

Employer paid premiums for group term life insurance (beneficiary = taxpayer)

$1,200

Employer paid premiums for extended health and dental plan

$1,500

Employer paid for income tax preparation

$350

Employer paid for couselling for retirement

$400

A scholarship for the taxpayer's son, received under a program provided by the employer.

$4,500

Dry-cleaning allowance for business clothing

$600

Employer directly pays for parking. The parking lot is private owned (not owned by the employer).

$800

Employer paid for seminar/workshop on new accounting software being implemented in company.

$900

Monthly car allowance ($200 per month)

$2,400

Other items:

Taxpayer stayed in condo in Barbados (owned by employer) for a one-week holiday. Typical value for a one week stay is $1,500.

$1,500

Taxpayer purchased merchandise from employer at a 20% discount, saving a total of $500 (still above cost). Discount is available to all employees.

$500

Taxpayer received the following gifts from the employer:

2 coffee mugs

$10

Gift card to the grocery store - taxpayer was voted the most friendly employee

$100

A watch - for working at the company for 10 years (employer provides a milestone gift at the 10 year mark)

$450

Weekend getaway in Mexico - given by employer for signing up the newest customers

$1,100

A holiday gift (various household gifts)

$75

Both column A and B must be correct to score for each row

Column A - select Taxable or Not Taxable from the dropdown arrow

Column B - select the section number from the ITA to support from the dropdown arrow

Taxable or Not Taxable

Section Reference

1 2 3 mployment Benefits marks The payer prended you with the following information related for their employment Required for a lot where te Table or Notable (from the dropdouin box - highlighted in telow), and identify the section number from the IPA to support your common from the dropdown beur highlighted in yellow) Insation Click on the individual cell totivate the dropdown arrow *) Make your selection in the option in the dropdownlist Lise your mutes, ted, ITA and the Employer Culile 41 as resenhos 4 Column A-select Taxable or Not Thalle from the dropdown Column welect the section number from the ITA to support from the dropdown arres Taxable or Not Taxable Section Reference Amount $ 1000 $ 1.000 5 5 17 a 9 10 31 12 13 14 15 16 $ S 8 $ $ L200 1100 390 100 $ 17 10 4.500 600 $ 19 $ 800 Employment income (received in 2020) Bonus {$1.000 received in December 2020 Bonus (L.co received in January 2011 Employer nord the following items Emelor contribution to comany registered Bension plan Samplover paid premiums for group term life insurance (beneficiary taxpayer) Employer paid premiums for extended health and dental plan Employer il for income tax ration Finnlover and for colline for retirement A scholarship for the taxpayer's son, received under a program provided by the employer Dry deaning allowance for business clothing Employer directly pays for parking. The parking lot is private owned (not owned by the uplover Employer paid for seminar/workshop on new accounting software being implemented Monthly sat allowance ($200 per month) Other item Taxpayer stayed in condo in Barbados (ned by employer) for a newek holiday Typical value for a une week stav is $1.10. Tanpayer purchased merchandise from employer at a 20% discount, saving a total of Boo istill above cost Discount is available to all emakes Texter reced the following is from the malow: 2 coffee mugs Gift card to the grocery store taxpayer was noted the most friendly employee A watch for working at the company for 10 years (employer provides a milestone gift at the 10 year mark) Weekend getaway in Mexica siven by emplover for signing up the mit new customers A holiday gift (varm household wits) 900 20 21 22 22 $ $ 2.400 $ 24 1.500 $ 300 25 26 27 20 29 8 8 RO 300 $ 30 31 450 L100 25 $ 33 34 35 36 37 38 39 40 41 42 43 45 4G 67 48 49 50 51 1 2 3 mployment Benefits marks The payer prended you with the following information related for their employment Required for a lot where te Table or Notable (from the dropdouin box - highlighted in telow), and identify the section number from the IPA to support your common from the dropdown beur highlighted in yellow) Insation Click on the individual cell totivate the dropdown arrow *) Make your selection in the option in the dropdownlist Lise your mutes, ted, ITA and the Employer Culile 41 as resenhos 4 Column A-select Taxable or Not Thalle from the dropdown Column welect the section number from the ITA to support from the dropdown arres Taxable or Not Taxable Section Reference Amount $ 1000 $ 1.000 5 5 17 a 9 10 31 12 13 14 15 16 $ S 8 $ $ L200 1100 390 100 $ 17 10 4.500 600 $ 19 $ 800 Employment income (received in 2020) Bonus {$1.000 received in December 2020 Bonus (L.co received in January 2011 Employer nord the following items Emelor contribution to comany registered Bension plan Samplover paid premiums for group term life insurance (beneficiary taxpayer) Employer paid premiums for extended health and dental plan Employer il for income tax ration Finnlover and for colline for retirement A scholarship for the taxpayer's son, received under a program provided by the employer Dry deaning allowance for business clothing Employer directly pays for parking. The parking lot is private owned (not owned by the uplover Employer paid for seminar/workshop on new accounting software being implemented Monthly sat allowance ($200 per month) Other item Taxpayer stayed in condo in Barbados (ned by employer) for a newek holiday Typical value for a une week stav is $1.10. Tanpayer purchased merchandise from employer at a 20% discount, saving a total of Boo istill above cost Discount is available to all emakes Texter reced the following is from the malow: 2 coffee mugs Gift card to the grocery store taxpayer was noted the most friendly employee A watch for working at the company for 10 years (employer provides a milestone gift at the 10 year mark) Weekend getaway in Mexica siven by emplover for signing up the mit new customers A holiday gift (varm household wits) 900 20 21 22 22 $ $ 2.400 $ 24 1.500 $ 300 25 26 27 20 29 8 8 RO 300 $ 30 31 450 L100 25 $ 33 34 35 36 37 38 39 40 41 42 43 45 4G 67 48 49 50 51