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Question 1 Vadi Cisse is employed at VitaLtd (VL) as a sales associate. In 2021, he earned $80,000 in salary and $37,000 in commission
Question 1 Vadi Cisse is employed at VitaLtd (VL) as a sales associate. In 2021, he earned $80,000 in salary and $37,000 in commission income. The following was withheld of his paycheques: Canada Pension Plan (CPP) contributions Employment Income (El) premiums Registered Pension Plan (RPP) contributions Income tax VL's contribution to Vadi's RPP in 2021 was $7,500. $3,166 890 5,000 15,000 Vadi frequently visits clients as part of his job requirements, both in-town and out-of-town. VL provided Vadi with a leased vehicle from January 1 - May 25, 2021, which he was allowed to take home at night and use personally when not working. Leasing costs for that period totalled $2,250 of which $375 related to insurance charges. Vadi drove this vehicle 11,000km total, 6,000km of which was for work purposes. Starting in June, VL changed its policy. While it still provided vehicles for employees to use for employment purposes, employees were no longer allowed to use the vehicle personally. For out-of-town travel, VL provides Vadi with a small allowance of $500/trip, which is considered unreasonable. Vadi was required to take 16 trips throughout 2021 and incurred the following expenses: Airfare/train Hotels Meals Taxis $13,000 9,600 3,500 400
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