Ms. A is an employee of a Canadian public company, Square Co. (SQUARE/Employer). She lives in Mississauga, ON and her salary for 2022 year is $115,000. She is not a salesperson and does not receive any commission income. While Ms. A receives various benefits from SQUARE as an employee, she is also required to pay some of her employment-related expenses under the terms of an employment contract. Assume all the conditions are satisfied as necessary for Ms. A to claim various eligible expenses.

Required: Determine Ms. A's minimum 2022 employment income. Show your full calculations with relevant schedules/notes for all items in a well-organized manner in Excel (i.e., Organize all items in the order of ITA 5, 6, 7, 8 as appropriate). Other Information (Item No.1 to 9):

1. For the year ending December 31, 2022, Ms. A was awarded a bonus of $32,000. Of this total, $25,000 was paid during 2022, with the remainder of $7,000 paid in January, 2023.

2. Ms. A is a member of her employer's RPP. In 2022, $5,000 was withheld from her salary as a contribution to this plan. SQUARE made a matching contribution of $5,000 to her RPP.

3. SQUARE provided Ms. A with a car to be used for employment purposes and paid the operating costs for the year that totaled $8,200. The cost of the car was $38,000, including HST of $4,372. The car was available to Ms. A throughout 2022. She drove a total of 63,000 kilometers. This included 8,000 kilometers of personal use and 55,000 for employment purposes.

4. In negotiating her new position with SQUARE, Ms. A had asked for a $20,000 interest free loan as one of her benefits and the loan became available to her on June 1, 2022. Assume that the prescribed rate is 2% for the Q1 and Q2, and 3% for Q3 and Q4 during 2022.

5. In 2020, Ms. A was granted options to buy 500 of the company's shares at $20 per share. This option price was higher than the estimated FMV of the company's shares at the time the options were granted. On January 2, 2022, Ms. A exercised these options. At this time the FMV of the shares was $28 per share. At the end of 2022, Ms. A sells the shares for $30 per share.

6. SQUARE provided Ms. A with the following additional benefits and gifts:

Allowance for acquiring regular business clothing $ 3,200

Music lesson fees (for her personal interest) 2,800

Mental health counselling fees 800

Christmas - wine and cheese basket gift 750

Thanksgiving - Starbucks gift certificate 100

7. During Ms. A's business trip to a client's premise, she spent $900 on meals. All the meals were consumed while away for more than 12 consecutive hours from her employer's place of business. 8. Ms. A paid due to her professional association of $950 as required by her employment contract. 9. Ms. A uses the 150 square foot office of her 750 square foot condo in Mississauga. Assume she exclusively uses her office for the employment purposes and is therefore eligible to claim the home office expenses. During 2022, her home costs were as follows:

Property taxes $ 2,800

Utilities 2,200

Insurance 960

Repairs & maintenance 1,440

Mortgage interest 12,000

Total 19,400

Answer rating: 100% (QA)

To determine Ms As minimum 2022 employment income and calculate her eligible expenses you can follow ... View the full answer