Schlitz Brewing is a proprietorship established in 2010 and operated by Sunny Schlitz. She has grown the business over the past 10 years and now has two full time employees. Schlitz Brewing is located at 123 Marzen Street in Victoria, V8V 1W1, and the business number is 50057 4399. Sunny's SIN number is 527 000 508.
It is now February 2021 and you are a second-year accounting student who has been hired by Sunny to complete the T4s for the 2020 tax year. Schlitz Brewing has only one payroll account. Sunny completed the payroll herself during the year, but needs assistance with the T4s as she is unsure how to enter the taxable benefits into the form.
Sunny provides you with the following information about her employees:
Komiko Kolsch
Komiko Kolsch (SIN 123 456 783) is her general manager and senior consultant and earns a salary of $137,500 per year. Komiko lives at 852 Frothy Head Road in Victoria V8V 2W2.
In addition to the salary, Schlitz Brewing paid for a term life insurance policy at $3,000 per year. A couple of years ago, Komiko negotiated that Schlitz Brewing would also make employer contributions to a registered pension plan for Komiko (Plan #1234567). Both Komiko and Schlitz Brewing contributed $7,500 each in 2020 to the plan. Sunny informs you that the pension adjustment to be recorded this year is $15,000.
Schlitz Brewing also pays the professional dues for Komiko, the dues paid in 2020 were $1,300. Tax deducted from Komiko's paycheques during the year was $37,320.
Manjeet Tamboli
The other employee Manjeet Porter (SIN 222 333 443) is a consultant and was paid a salary of $81,000 and had $27,955 in income tax deducted from his paycheque. Manjeet lives at 999 Gose Street in Victoria V8V 0X0.
Manjeet does not pay into the pension plan, nor does he have any professional dues.
Schlitz Brewing supplied a vehicle for employees Manjeet to use. The vehicle originally cost $74,000. Manjeet drove the vehicle 41,930 kilometres during the year, 23,000 of which were personal. Manjeet had $9,000 taken off of his paycheque during the year to partially pay back operating expenses.
On May 1, 2020, Manjeet approached Sunny for an employee loan. Schlitz Brewing gave him $30,000 and he is paying interest to the business at 1.5% per year. You have checked and the CRA prescribed rate for each quarter of the year was 3% (use number of days in your calculation for the loan interest benefit, there are 366 days in 2020).
T4 Project ACCT 240
W2021
Other Notes:
Both employees had the maximum CPP and EI withheld from their paycheques. For the 2020 year, that information is as follows:
CPP
EI
Maximum Earnings
$58,700
$54,200
Maximum Withholdings
2,898
856.36
As well as a $12,000 Christmas bonus (already included in the gross payroll amounts noted), Schlitz Brewing gave Christmas gifts to all employees. Komiko received a $2,500 BC Liquor Store gift card and Manjeet received a set of crystal glassware valued at $400.
Both Manjeet and Komiko are required under contract to travel to locations that were not their normal place of business to perform their employment duties. Komiko likes to use her own vehicle and therefore receives an automobile allowance of $575 per month instead. Komiko is not required to be away from the municipality for more than 12 hours. She is responsible for paying her own operating expenses for her vehicle.
Sunny remitted $76,900 in payroll remittances for 2020. Sunny has indicated she prefer you were the contact person for any questions from CRA with respect to the payroll. The office contact number is 250-555-1212.
Required:
1. Using the information provided and PDF documents in the assignment folder, prepare one T4 for each of the employees and the T4 summary.
2. Complete the T2200 for Komiko.
3. Upload the completed forms to the assignment folder by the due date provided by your instructor.
Please save each T4 file using the first name of the employee and the T2200 and T4Summary with their form name.
Clear Data Employer's name - Nom de femployeur Canada Revenue Agence du revenu du Canada T4 Year Statement of Remuneration Paid Anne Etat de la remuneration payee e 10 come wax deducted - line 437 pot sur le revenueretenu - ligne 437 14 54 Employer's account number / Numero de comple de ( employour El insurable eamings Province d'empiol Gains assurables d'AE 10 Social insurance number compt - Exe Numero d'assurance sociale CPP/OPP EI 12 28 Code d'emplo CPP/OPP pen ouvrant droit & pension - RPC/RRO RPC/RRO AE RPAP 29 Union dues - line 212 Employee's name and address - Nom et adresse de l'employe tions syndicales - ligne 212 18 44 Charitable donations - line ) a un RPA - Protected B when completed / Protege B une fois rempli 20 RPP or DPSP registration " d'agrement dun RPA ou dun RPDE 52 PPIP insurable earnings s assurables du RPAP Box - Cas Amount - Montant Box - Can Amount - Montana Amount - Montant Other information (see over) Autres Box - Case Amount - Montant Box - Case Amount - Montant Box - Case Amount - Montant T4 (18) enseignements (voir au verso) Canada Revenue Agence du revenu Agency du Canada T4 Year Statement of Remuneration Paid Annee Etat de la remuneration payee 10 ome tax deducted - line 437 venus demplol - pot sur le revenuetenu - ligne 437 14 54 Employer's account nur Province d emploi El insurable earning Gains assurables d AE 10 Social insurance number Exempt - Exe Numero of assurance social CPP/OPP EI CPP/OPP pensionable earnings 28 ode d'emplo Be Temploye au RRO - Lone 3 Gains ouvrant droit a pension - RPC/RRQ 29 26 RPC/RRQ AE RPAP 'S El premiums - tine 312 Union dues - line 212 Employee's name and address - Nom et adresse de l'employe employe & TAE - ligne 312 ations syndicales - ligne 212 18 PP contributions - line 207 aations & un RPA - ligne 20 Lance - ligne 34 Protected B when completed / Protege B une fois rempli 20 it - Ine I'dagrement dun RPA ou dun RPDO 52 s assurables du RPAP 55 56 as - Cas Amount- Montant Box - Case mount - Montant Box - Case Amount - Montant Other information (see over) Autres ox - Case Amount- Monitant ox - Case Amount - Montant Box - Cas Amount - Montant T4 (18) renseignements (voir au verso)Clear Data Report these amounts on your tax return. 14 - Employment income - Enter on line 101. 67 - Non-eligible retiring allowances - See line 130 in your tax guide. 16- Employee's CPP contributions - See line 308 in your tax guide 74 - Past service contributions for 1989 or earlier years while a contributor 17 - Employee's OPP contributions - See line 308 in your tax guide. 75 - Past service contributions for 1989 or earlier years while not a See line 207 in your tax guide. contributor - See line 18 - Employee's El premiums - See line 312 in your tax guide 20- RPP contributions - Includes pas vice contributions. (7 -Workers' compensation benefits repaid to the employer - Enter on line 229. See line 207 in your tax guide. 78 -Fishers - Gross income 22 - Income tax deducted - Enter on line 437. 79 - Fishers - Net partnership amount See Form 12121. 39 - Security options deduction 110(1)(d) - Enter on line 249. Do not enter on line 101. 80 - Fishers - Shareperson amount 41 - Security options de on 110(1)(d.1) - Enter on line 249. 12 - Employment commissions - Enter on line 102 81 - Placement or employment agency This amount is already included in box 14. workers Gross income 43 - Canadian Armed Forces personnel and police deduction - Enter on 12 - Taxi drivers and drivers of other See Form T2125 line 244. This amount is already included in box 14. passenger-carrying vehicles Do not enter on line 101. 44 - Union dues - Enter on line 212 83 - Barbers or hairdressers 46 - Charitable donations 85 - Employee-paid premiums for private health services plans - See line 330 52 - Pension adjustment - Enter on line 206. in your tax guide. 55 - Provincial parental insurance plan (PPIP) - Residents of Quebec, see 87 - Emergency services volunteer exempt amount - See "Emergency line 375 in your tax guide. Residents of provinces or territories other than services volunteers" at line 101, and the information at lines 362 and 395 in Quebec, see line 312 in your tax guide. your tax guide. 66 - Eligible retiring allowances - See line 130 in your tax guide. Do not report these amounts on your tax return. For Canada Revenue Agency use only. (Amounts in boxes 30, 32, 34, 36, 38, 40, and 86 are already included in box 14.) 30 - Board and lodging 40 - Other taxable allowances and benefits 31 - Special work site 68 - Indian (exempt income) - Eligible retiring allowances 32 - Travel in a prescribed zone 69 - Indian (exempt income) - Non-eligible retiring allowances 33 - Medical travel assistance 70 - Municipal officer's expense allowance 34 - Personal use of employer's automobile or motor vehicle 71 - Indian (exempt income) - Employment 36 - Interest-free and low-interest loans 86 - Security options election 38 - Security options benefits 8 - Indian (exempt income) - Self-employment Privacy Act. personal information bank numbers CRA PPU 005 and CRA PPU 047 Veuillez declarer ces montants dans votre declaration de revenus. 14- Revenus d'emploi - Inscrivez a la ligne 101 67 - Allocations de retraite non admissibles - Lisez la ligne 130 de votre guide d'impot. 16 - Cotisations de l'employe au RPC - Lisez la ligne 308 de votre guide dimpot. 74 - Services passes pour 1989 et les annies precedentes pendant que femploye cotisalt 17 - Cotisations de l'employe au RRQ - Lisez la ligne 308 de votre guide dimpot. 75 - Services passes pour 1989 et les annees precedentes pendant que l'employe ne cotisait pas - Lisez la ligne 207 de votre guide d'impot. 18 - Cotisations de l'employe a l'AE - Lisez la ligne 312 de votre guide dimpet. 77 - In imnites pour accidents du travail remboursees a l'employeur - Inscrivez a la ligne 229. 20 - Cotisations a un RPA - Comprend les colisa r services passes. Lisez la ligne 207 de votre guide dimpot. 78 - Pecheurs - Revenus bruts 22 - Impot sur le revenur etenu - rivez a la ligne 437. - Pecheurs - Montant net d'un associe Consultez le formulaire T2121 39- Deduction pour options d'achat de titres 110(1)d) - Inscrivez a la ligne 249, de la societe de personnes N'inscrivez pas ce montant a la ligne 101. 41 - Deduction pour options d'achat de titres 110(1)d.1) - Inscrivez a la 80 - Pecheurs - Montant du pecheur a part ligne 249. 81 - Travailleurs d'agences ou de 42 - Commissions d'emploi - Inscrivez a la ligne 102, Ce montant est deja bureaux de placement Revenus bruts compris dans la case 14. 82 - Chauffeurs de taxi ou d'un autre Consultez le formulaire T2125. 13- Deduction pour le personnel des Forces armees canadiennes et des vehicule de transport de passagers N'inscrivez pas ce montant a forces policieres - Inscrivez a la ligne 244, Ce montant est deja compris la ligne 101. dans la case 14. 83 - Coiffeurs pour h es ou dames 44 - Cotisations syndicales - Inscrivez a la ligne 212. 85 - Primes versees par l'employe a un regime prive d'assurance-maladie - - Lisez la 46 - Dons de bienfalsance ligne 330 de votre guide d'impot. 52 - Factour d'equivalen e - Inscrivez a la ligne 206. 57 - Montant exempt d'impot verse a un volontaire des services d'urgence - 65 - Regime provincial d'assurance parentale (RPAP) - Residents du Quebec, Lisex . Volontaires des services d'urgence > a la ligne 101, et les renseignements lisez la ligne 375 de votre guide d'impet. Residents des autres provinces ou aux lignes 362 et 395 de votre guide dimpot. territoires, lisez la ligne 312 de votre guide dimpot. 56 - Allocations de retraite ad - Lisez la ligne 130 de votre guide d'impet. Ne declarez pas ces montants a votre declaration d'impot. A l'usage de l'Agence du revenudu Canada seulement. (Les montants des cases 30, 32, 34, 36, 38, 40 et 86 sont deja inclus a la case 14.) 30 - Pension et logement 40 - Autres allocations et avantages imposables 31 - Chantier particulier n ayant un revenu exonere - Allocations de retraite admissibles 32 - Voyages dans une zone visee par reglement - Indien ayant un revenu exonere - llocations de retraite non admissibles 33 - Aide accordee pour les voyages pour soins medicaux unicipal 34 - Usage personnel de l'automobile ou du vehicule a moteur de l'employeur 71 - Indien ayant un revenu exonere - emploi 36 - Prets sans interet ou a faible interet - Choix lies aux options d'achat de titres 38 - Avantages lies aux options d'achat de titres - Indien ayant un revenu exonere - travail independant Lol sur la protec personnels ARC PPU 006 of ARC PPU 047Clear Data Canada Revenue Agence du revenu Protected B when completed Agency du Canada 0505 T4 Summary Sommaire Protege B une fois rempli For the year ending December 31, Pour l'annee se terminant le 31 decembre 20 Summary of Remuneration Paid Sommaire de la remuneration payee You have to file your T4 information return Employer's account number (15 characters) - Numero de compte de l'employeur (15 caracteres) on or before the last day of February. See the information on page 2. me and address of employer - Nom of adresse de Femployeur Vous devez produire votre declaration de renseignements 14 au plus tard le dernier jour de fevrier. Lisez les renseignements a la page 2. Total number of T4 slips filed Employees' CPP contributions Nombre total de feuillets 14 produits Cotisations des employee au RPC Do not use this area 88 16 N'inscrivez rien icl Employer's CPP contributions Employment income - Revenus d'emplol moloveur au RPC Cotisations de femployeur 14 27 06 2 3 Registered pension plan (RPP) contributions a un regime de perision agree (RPA Employees' El premiums - Cotisations des employes a TAE to forma 20 18 91 1 2 Pension adjustment - Facteur d'equivalence Employer's El premiums - Colisations de l'employeur a FAE Date 52 19 93 Income tax deducted - Impet sur le revenuretenu PO15-1 22 94 96 Total deductions reported (16 + 27 # 18 + 19 + 22) NMEFP APPT APPED 80 97 98 Minus: remittances - Moins : versements Mama - Note 82 Generally, we do not Generalement, une Prepared by - Exbali par charge or refund a difference de 2 5 ou difference of $2 or less. moins n'est ni exigee ni remboursee. Difference - Difference Overpayment - Paiement en trop Balance due - Solde du Internal use only - Pour usage interne 84 86 GIN of the proprietor(s) or principal owner(s) - NAS du ou des proprietaires Canadian-controlled private corporations or unincorporated employers 74 Societes privdes sous controle canadien ou employeurs non constitues 75 Person to contact about this return Area code Telephone number Extension Personne avec qui communiquer au sujet de cette declaration ndicalif regional Numero de telephone Poste 76 78 Certification - Attestation I certify that the information given on this T4 information return and on related slips is correct and complete. J'atteste que les renseignements fouris dans cotte declaration de renseignements T4 et sur tous les feuillets connexes sont exacts of complets. Date Signature of authorized person - Signature dune personne autorisee Position or office - Titre ou poste See the privacy notice at the bottom of next page. Consultez l'avis de confidentialite au bas de la page suivante. T4 SUM (18) CanadaClear Data If you file your T4 information return electronically, do not Si vous produisez votre declaration de renseignements T4 fill out this T4 Summary. electroniquement, ne remplissez pas ce formulaire. Mandatory electronic filing Production obligatoire par voie electronique If you file more than 50 T4 slips for a calendar year, you must file Si vous produisez plus de 50 feuillets T4 par annee civile, vous the T4 return over the Internet. devez produire la declaration de renseignements T4 par voie electronique. You may choose one of the following electronic filing formats: Pour ce faire, choisissez l'une des methodes suivantes : Internet file transfer (XML) . Le transfert de fichiers par Internet (XML) Web Forms Les formulaires Web For more information about filing electronically, go Pour en savoir plus sur la production par voie electronique, allez to canada.ca/taxes-iref. a canada.ca/impots-tedr. You can also file your information returns online using the Vous pouvez aussi produire vos declarations de renseignements en "File a return' service. Go to: ligne au moyen du service a : My Business Account at canada.ca/my-cra-business-account, . Mon dossier d'entreprise en allant if you are the business owner a canada.ca/mon-dossier-entreprise-arc, si vous etes le Represent a Client at canada.ca/taxes-representatives, if proprietaire de l'entreprise; you are an authorized representative or employee. . Representer un client en allant a canada.ca/impots-representants, si vous un representant ou un employe autorise. Filing on paper Production sur papier Fill out this form using the instructions in the RC4120, Employers' Remplissez ce formulaire selon les directives indiquees dans le Guide - Filing the T4 Slip and Summary. RC4120, Guide de l'employeur - Comment produire le feuillet T4 et le Sommaire. The employer's name and payroll program account number have to Le nom et le numero de compte de programme de retenues sur la be the same as shown on your statement of account. paie doivent etre les memes que ceux qui figurent sur votre releve de compte. To get our forms and publications, go to canada.ca/cra-forms or Pour obtenir nos formulaires et publications, allez call 1-800-959-5525. a canada.ca/arc-formulaires ou composez le 1-800-959-7775. Send this T4 Summary and the related T4 slips to: Envoyez ce sommaire et les feuillets T4 connexes au : Jonquiere TC CF de Jonquiere T4 Program Programme T4 Post Office Box 1300 LCD Jonquiere Case postale 1300, PDF Jonquiere Jonquiere QC G7S OL5 Jonquiere QC G7S OL5 Make a payment Faire un paiement If you have a balance owing, you can make your payment in many Si vous avez un solde do, vous pouvez faire votre paiement de different ways. nombreuses facons. You can pay: Vous pouvez payer : online or by telephone using your financial institution's banking . en ligne ou par telephone en utilisant les services bancaires de services votre institution financiere; online by using the CRA's My Payment service en ligne en utilisant le service Mon paiement de l'ARC at canada.ca/my-cra-payment a canada.ca/mon-paiement-arc; by setting up a pre-authorized debit agreement using the . par la mise en place d'un accord de debit preautorise en My Business Account service utilisant le service Mon dossier d'entreprise at canada.ca/my-cra-business-account a canada.ca/mon-dossier-entreprise-arc; in person at your financial institution in Canada. To do so, you . en personne a votre institution financiere au Canada. Pour ce have to have a remittance voucher faire, vous devez avoir une piece de versement. For more information on how to make your payment, go Pour en savoir plus sur les differents modes de paiement, allez to canada.ca/payments. If you remit your payment late, any a canada.ca/paiements. Nous pourrions vous imposer une balance due may be assessed penalties and interest at the penalite et des interets sur le solde do, au taux prescrit, si votre prescribed rate paiement est en retard. Personal information is collected under the Income Tax Act to administer tax, benefits, ersonnels sont recueillis selon la Lol de l'impot sur le revenuafin and related programs. It may also be used for any purpose related to the enforcemen d'administrer les programme tions et autres. lis peuvent egalement of the Act such as audit, compliance and collection activities. It may be shared or etre utilises pour toute fin lice a l'execution de la Loi telle que la verification, I'observa verified with other federal, provincial, territorial or foreign government institutions to the et le recouvrement, Les ment. Les renseignements pouvent etre transmis a une autre institution extent authorized by law. 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Consultez le Fichier de renseignements personnels ARC PPU 047 sur Info Source en allant a canada.cClear Data Canada Revenue Protected B when completed du Canada Agence du revenue Declaration of Conditions Agency of Employment The employer must complete this form for the employee to deduct employment expenses from their income. The employee does not have to file this form with their return, but must keep it in case we ask to see it. For details about claiming employment expenses, see Guide T4044, Employment Expenses, or interpretation bulletins IT-352, Employee's Expenses, Including Work Space in Home Expenses, and IT-522, Vehicle, Travel and Sales Expenses of Employees. Part A - Employee information (please print) Last name First name Tax year Social insurance number Home address Business address Job title and brief description of duties Part B - Conditions of employment 1. Did this employee's contract require them to pay their own expenses while carrying out the duties of employment? ........ Yes No Answer "yes" even if you provide an allowance or a reimbursement in respect of some or all such expenses. If no, the employee is not entitled to claim employment expenses, and you are not required to answer any of the other questions. 2. Did you normally require this employee to travel to locations that were not your place of business or between different locations of your places of business, during the course of performing their employment duties? ...... Yes No If yes, what was the employee's area of travel be specific)? 3. Did you require this employee to be away for at least 12 consecutive hours from the municipality and metropolitan area (if there is one) of your business where the employee normally reported for work? Yes No If yes, how frequently? 4. Indicate the period(s) of employment during the year: From Year Month Day to Year Month Day If there was a break in employment, specify dates: 5. Did this employee receive or were they entitled to receive a motor vehicle allowance?............. Yes No If yes, indicate: . the amount received as a fixed allowance, such as a flat monthly allowance . the per km rate used ($/km), and the amount received . the amount of the allowance that was included on the employee's T4 slip Did this employee have the use of a company vehicle? ... Yes No Was the employee responsible for any of the expenses incurred for the company vehicle? ... Yes No If yes, indicate the amount and type of expenses: Amount Type of expense in to T2200 E (19) (Ce formulaire est disponible en francais.) CanadaClear Data Protected B when completed 6. Did you require this employee to pay for expenses for which they did or will receive a reimbursement? ......... Yes No If yes, indicate the amount and type of expenses that were: Amount Type of expense Included on T4 slip . received upon proof of payment Yes No . charged to the employer, such as credit card charges Yes No 7. Did you require this employee to pay other expenses for which they did not receive any allowance or reimbursement? ........ Yes No If yes, indicate the type(s) of expenses: 8. Did you pay this employee wholly or partly by commission according to the volume of sales made or contracts negotiated? ..... Yes No If yes, indicate the commissions paid ($ and the type of goods sold or contracts negotiated ( Is there a business development account or other similar commission income account available from which the employee's employment expenses are paid or reimbursed?....... Yes No If yes, is the commission income from this account included in box 14 of the 14 slip?........................ Yes No 9. Did this employee's contract of employment require them to: . rent an office away from your place of business? ....... Yes No . employ a substitute or assistant? .. Yes No . pay for supplies that the employee used directly in their work? ... Yes No . pay for the use of a cell phone? .. Yes No Did you or will you reimburse this employee for any of these expenses? .............. Yes No If yes, indicate the type of expense and amount you did or will reimburse: Amount Type of expense Included on T4 slip Yes No Yes No Yes No 10. Did this employee's contract of employment require them to use a portion of their home for work? Yes No If yes, approximately what percentage of the employee's duties of employment were performed at their home office? ...... Did you or will you reimburse this employee for any of their home office expenses? ....... .......... Yes No If yes, indicate the type of expense and amount you did or will reimburse: Amount Type of expense Included on T4 slip Yes No Yes S No Yes NoClear Data Protected B when completed 11. Did this employee work for you as a tradesperson? ............. Yes No If yes, did you require this employee, as a condition of employment, to purchase and provide tools that were used directly in their work? ..... Yes ] No If yes, do all of the tools itemized on the list provided to you by the employee satisfy this condition? Yes No Please sign and date the list. 12. Did this employee work for you as an apprentice mechanic? ..... Yes No If yes, was this employee registered in a program established under the laws of Canada or of a province or territory that leads to a designation under those laws as a mechanic licensed to repair self- Yes No propelled motorized vehicles? ........ Did you require this apprentice mechanic, as a condition of employment, to purchase and provide tools that were used directly in their work? ..... Yes No If yes, are all of the tools itemized on the list provided to you by the employee used in connection with the employee's work for you as an apprentice mechanic in the program described in this question? Yes ] No Please sign and date the list. 13. Did this employee work for you in forestry operations? ........ Yes No Did this employee, as a condition of employment, have to provide a power saw (including a chain saw or tree trimmer)? ............. Yes No Employer declaration I certify that the information provided on this form is, to the best of my knowledge, correct and complete. Name of employer (print) Name and title of authorized person (print) ext. Date Telephone number Signature of employer or authorized person Note: Please clearly print the name and telephone number of the authorized person in case we need to call to verify information. See the privacy notice on your return
