T4 Project ACCT 240 F2023 Old School Consulting Old School Consulting (OSC) is a proprietorship run by Mitch the Godfather Martin. He established his business in 2004 and over the years the work has grown and he now has two full time employees. OSC is located at 123 Vancouver Street in Victoria V8V 1W1, and the business number is 50057 4399 and Mitchs SIN number is 527 000 509. It is now February 2023 and you have recently been hired by Mitch Martin to complete the T4s for the 2022 year. OSC has only one payroll account. He completed the payroll himself during the year, but needs assistance with the T4s as he is unsure how to enter the taxable benefits. Mitch provides you with the following information about his employees: Frank the Tank Ricard (SIN 123 456 782) is the general manager and senior consultant and earns a salary of $240,000 per year. Frank lives at 852 Gordon Head Road in Victoria V8V 2W2. In addition to the salary, OSC paid for a term life insurance policy at $2,500 per year. A couple of years ago, Frank the Tank negotiated that OSC also pay into a defined contribution pension plan (a type of Registered Pension Plan) for Frank (Plan #1234567). Both Frank and OSC contributed $10,500 each in 2022 to the plan. Mitch informs you that the pension adjustment to be recorded this year is $21,000. OSC also pays the work-related professional dues for Frank, the dues paid in 2022 were $1,200. Tax deducted from Franks paycheques during the year was $58,120. The other employee, Bernard Beanie Campbell, (SIN 222 333 445) is a consultant and was paid a salary of $83,460 and had $29,000 in income tax deducted from his paycheque. Beanie lives at 999 Government Street in Victoria V8V 0X0. Beanie does not pay into the pension plan, nor does he have any work-related professional dues but OAS paid $700 for his dues at the local golf club . Both employees had the maximum CPP and EI withheld from their paycheques. For the 2022 year, that information is as follows: CPP EI Maximum Earnings $64,900.00 $60,300.00 Maximum Withholdings 3,499.80 952.74 As well as the $12,000 Christmas bonus for both employees (already included in the gross payroll amounts noted), OSC gave Christmas gifts to all employees. Frank received a $5,000 BC Liquor Store gift card and Beanie received a box of cigars valued at $450.

T4 Project ACCT 240 F2023 OSC supplied a vehicle for employees Beanie to use. The vehicle originally cost $150,000. Beanie drove the vehicle 46,850 kilometres during the year, 22,850 of which were personal. Beanie had $8,000 taken off of his paycheque during the year to partially pay back operating expenses. Frank likes to use his own vehicle and therefore receives an automobile allowance of $750 per month instead. Both Beanie and Frank are required under contract to travel to locations that were not their normal place of business to perform their employment duties. Frank is not required to be away from the municipality for more than 12 hours. He is responsible for his own expenses on her vehicle. On July 1, Beanie approached Mitch for an employee loan. OSC gave him $24,000 and he is paying interest at 0.5% per year. You have checked and the prescribed rate for each quarter of the year was 3.5% (use number of days in your calculation for the loan interest benefit, ignoring any leap years). All salary payments are made on the last day of each month and are evenly spread throughout the year. All taxable benefits are not included in monthly paycheques, but are included in the final paycheque in December. Mitch remitted $78,900 in payroll remittances for 2022. Mitch has indicated he would prefer you were the contact person for any questions from CRA with respect to the payroll. The office contact number is 250-555-1212.