Question
Sean was employed by two employers in 2020. From Jan 1, 2020 to August 31, 2020 Sean worked in Montreal as a sales manager for
Sean was employed by two employers in 2020. From Jan 1, 2020 to August 31, 2020 Sean worked in Montreal as a sales manager for Shining Limited, a Canadian controlled private corporation. His base salary while employed in Montreal was $175,000. As sales manager, he was entitled to a small commission on the sales made by staff under his supervision. He received $7,500 in such commissions in 2020, which included $1,000 of commissions earned late in 2020 that were not received until 2021. All of Sean's expenses related to his commission income were reimbursed by his employer. This totaled $1,250.
Shining limited deducted the following from his salary:
Canada Pension Plan contributions $2,898
Employment insurance premiums 856
Income tax 35,000
Private medical plan premiums 300
Union dues 500
Contributions to a registered pension plan 3,500
Reimbursement of personal use of employer vehicle 200
In addition to the above, the employer paid the following to Sean or on his behalf:
Travel allowance $2,400
Group term life insurance premiums for $50,000 coverage 600
Premiums for a private medical insurance plan 300
Amounts to a deferred profit sharing plan 2,000
Contributions to a registered pension plan 3,500
Golf club membership dues to entertain potential clients 6,000
Calculate the amount to be included in employment income of Sean for 2020.
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