Rescue Consulting is a proprietorship run by Ellie Chamberson. She established her business in 2010 and over the years the work has grown and she now has two full-time employees. Rescue Consulting is located at 123 Vancouver Street in Victoria V8V 1W1, and the business number is 50057 4399 and Ellies SIN number is 527 000 509.

Ellie has decided she needs a full-time bookkeeper and office assistant and has hired you as her newest employee. It is now February 2022 and it is your job to complete the T4s for the 2021 year. Rescue Consulting has only one payroll account.

Ellie provides you with the following information about her employees:

Sam Steele (SIN 123 456 782) is her general manager and senior consultant and earns a salary of $118,000 per year. Sam lives at 852 Gordon Head Road in Victoria V8V 2W2.

In addition to the salary, Rescue Consulting paid for a term life insurance policy at $2,100 per year. A couple of years ago, Sam negotiated that Rescue Consulting also pay into a defined contribution pension plan (a type of RPP) for Sam (Plan #1234567). Both Sam and Ellie contributed $6,200 each in 2021 to the plan. Ellie informs you that the pension adjustment to be recorded this year is $12,400.

Rescue Consulting also pays the professional dues for Sam, the dues paid in 2021 were $1,900. Tax deducted from Sams paycheques during the year was $22,540.

The other employee Norman Price (SIN 222 333 445) is a consultant and was paid a salary of $72,000 and had $20,500 in income tax deducted from his paycheque. Norman lives at 999 Government Street in Victoria V8V 0X0.

Norman does not pay into the pension plan, nor does he have any professional dues.

Both employees had the maximum CPP and EI withheld from their paycheques. For the 2021 year, that information is as follows:

CPP

Maximum Earnings $61,600.00 Maximum Withholdings 3,166.45

EI

$56,300.00 899.54

In addition to the $10,000 Christmas bonus (already included in the gross payroll amounts noted), Rescue Consulting gave Christmas gifts to all employees. Sam received a $3,000 Amazon gift card and Norman received a 50" Television valued at $650.

T4 Project ACCT 240 2023W

Rescue Consulting supplied a vehicle for employees Norman to use. The vehicle originally cost $48,000. Norman drove the vehicle 63,000 kilometres during the year, 38,600 of which were personal. Norman had $5,000 taken off of his paycheque during the year to partially pay back operating expenses.

Sam likes to use her own vehicle and therefore receives an automobile allowance of $650 per month instead. Both Norman and Sam are required under contract to travel to locations that were not their normal place of business to perform their employment duties. Sam is not required to be away from the municipality for more than 12 hours. She is responsible for her own expenses on her vehicle.

On March 1, Norman approached Ellie for an employee loan. Rescue Consulting gave him $16,000 and he is paying interest at 2% per year. You have checked and the prescribed rate for each quarter of the year was 4% in quarter 1, 4% in quarter 2, 5% in quarter 3 and 7% in quarter 4 (use months for the calculation of interest).

All salary payments are made on the last day of each month and are evenly spread throughout the year.

Ellie remitted $60,900 in payroll remittances for 2021. Ellie has indicated she would prefer you were the contact person for any questions from CRA concerning the payroll. The office contact number is 250-555-1212.

Required Submission:

1. Create a word document and save it as LASTNAME_T4Project2023W

2. Label your word document with your name and student number on the first two

lines.

3. Take screenshots of the following**

a. T4 for Sam

b. T4 for Norman c. T4 Summary