Oscar works as a salesperson for a software company, X-Tech, which offers him a fixed salary, commissions and several benefits. He is having a hard time understanding which part of his compensation is taxable. He is new in Quebec and needs your help. Before meeting with you, he prepared the following list:

2022 Compensation Package:

- 2022 fixed salary: $45,000

- 2021 bonus: $8,000 (earned and declared in Dec. 2021, but paid in March 2022)

- 2022 June bonus: $9,770

- 2022 Dec. bonus: $11,220 (earned and declared in Dec. 2022, but paid in Feb. 2023)

- 2022 total commissions: $21,860

2022, Oscar received the following gifts and benefits1:

During

- Gift card for Amazon, $250

- X-Tech nice polo, $50

- Discounts of 20% on softwares purchased by Oscar (discounts worth $350)

- Tuition for sales techniques seminar, $690

- Reimbursement of meals with some corporate clients, $580

- Tuition for a guitar class, $340

1 All amounts in this case include GST&QST when applied.
Taxation, Winter 2023 – Mark Lafrance-Fugère

Between January 1st and March 31st, Oscar used his own car when he had to travel for work. For these months, he drove 1,300 kilometers for personal reasons and 1,500 kilometers for work, and his total expenses (including gas, insurance, maintenance, and registration) were $1,660. Oscar received an allowance of $500 per month.

Between April 1st and December 31st, X-Tech modified the allowance for the car and it became 47¢ per kilometer. For these months, Oscar kept using the same car and drove 9,500 kilometers for work, for a total of 11,100 kilometers driven. His total expenses (including gas, insurance, maintenance, and registration) were $11,450.

On October 1st, Oscar was involved in a car accident and it was a total loss (the car, not him). Oscar suffered light injuries and was unable for 8 weeks. Fortunately, he had a disability insurance plan through his work which gave him a bi-weekly benefit of $1,200 (for a total of $4,800). This plan (which is paid 90% by the employer and 10% by the employee), cost the following premiums:

- in 2021, $1,710 paid by X-Tech and $190 paid by Oscar;

- in 2022, $1,908 paid by X-Tech and $212 paid by Oscar.

At the end of November, Oscar was back to work in perfect shape. The only thing left from the accident was a small scar on his forehead. When the manager saw him back at work, he said “Well isn’t that funny? You also have “scar” in your name!” Oscar didn’t laugh at his bad joke.

Afterwards fill in amounts In the associated boxes below.

 

Transcribed Image Text:

Employer's name - Nom de l'employeur ABC Inc 123 Random Street Montreal QC H1YOB1 54 Employer's account number / Numro de compte de l'employeur 12 Social insurance number Numro d'assurance sociale Ying, Karoll 891 Blurry Street Montral QC H2S8H6 Other information (see over) Autres renseignements (voir au verso) Exempt - Exemption PPIP Box Case 85 Box Case CPP/QPP 28 RPC/RRQ AE RPAP Employee's name and address - Nom et adresse de l'employ Last name (in capital letters) - Nom de famille (en lettres moules) First name - Prnom Initial - Initiale Amount Montant 1,740 00 Amount - Montant Year Anne 2022 Canada Revenue Agency Province of employment Province d'emploi 10 QC Employment code Code d'emploi 29 Box - Case Box Case 14 Agence du revenu du Canada 86,014 00 Employee's CPP contributions - see over Cotisations de l'employ au RPC - voir au verso 16 Amount - Montant Amount Montant Employee's QPP contributions - see over Cotisations de l'employ au RRQ - voir au verso 17 3,776 10 Employment income Revenus d'emploi 20 Employee's El premiums. Cotisations de l'employ l'AE 18 723 60 52 Statement of Remuneration Paid tat de la rmunration paye RPP contributions Cotisations un RPA Pension adjustment Facteur d'quivalence Employee's PPIP premiums - see over Cotisations de l'employ au RPAP - voir au verso 55 424 91 Box Case Box Case 22 T4 44 24 CPP/QPP pensionable earnings Gains ouvrant droit pension - RPC/RRQ 26 64,900 00 Income tax deducted Impt sur le revenu retenu 9,967 12 56 El insurable earnings Gains assurables d'AE Union dues Cotisations syndicales 46 RPP or DPSP registration number N d'agrment d'un RPA ou d'un RPDB 50 60,300 00 Charitable donations Dons de bienfaisance PPIP insurable earnings Gains assurables du RPAP Amount - Montant Amount - Montant Employer's name - Nom de l'employeur ABC Inc 123 Random Street Montreal QC H1YOB1 54 Employer's account number / Numro de compte de l'employeur 12 Social insurance number Numro d'assurance sociale Ying, Karoll 891 Blurry Street Montral QC H2S8H6 Other information (see over) Autres renseignements (voir au verso) Exempt - Exemption PPIP Box Case 85 Box Case CPP/QPP 28 RPC/RRQ AE RPAP Employee's name and address - Nom et adresse de l'employ Last name (in capital letters) - Nom de famille (en lettres moules) First name - Prnom Initial - Initiale Amount Montant 1,740 00 Amount - Montant Year Anne 2022 Canada Revenue Agency Province of employment Province d'emploi 10 QC Employment code Code d'emploi 29 Box - Case Box Case 14 Agence du revenu du Canada 86,014 00 Employee's CPP contributions - see over Cotisations de l'employ au RPC - voir au verso 16 Amount - Montant Amount Montant Employee's QPP contributions - see over Cotisations de l'employ au RRQ - voir au verso 17 3,776 10 Employment income Revenus d'emploi 20 Employee's El premiums. Cotisations de l'employ l'AE 18 723 60 52 Statement of Remuneration Paid tat de la rmunration paye RPP contributions Cotisations un RPA Pension adjustment Facteur d'quivalence Employee's PPIP premiums - see over Cotisations de l'employ au RPAP - voir au verso 55 424 91 Box Case Box Case 22 T4 44 24 CPP/QPP pensionable earnings Gains ouvrant droit pension - RPC/RRQ 26 64,900 00 Income tax deducted Impt sur le revenu retenu 9,967 12 56 El insurable earnings Gains assurables d'AE Union dues Cotisations syndicales 46 RPP or DPSP registration number N d'agrment d'un RPA ou d'un RPDB 50 60,300 00 Charitable donations Dons de bienfaisance PPIP insurable earnings Gains assurables du RPAP Amount - Montant Amount - Montant

Answer rating: 100% (QA)

Taxable Employment Income Fixed Salary 45000 2022 Bonuses June 9770 December paid in 2023 NOT taxabl... View the full answer