As a Payroll professional you must be able to explain how you arrived at the employees' net earnings when they inquire.

detailed note (composition - - using MS Word) to the employee that explains the differences between acash allowance, acash taxable benefitand anon-cash taxable benefit.

• Also explain whether each of those allowances and/or benefits aresubject to -OR- not subject toCanada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and incomeTAX.

• Then providetwo examples eachof a cash allowance, a cash taxable benefit and a non-cash taxable benefit.