Question: Janet started working for Quick Solutions located in Regina, Saskatchewan, on June 1, 1983. She joined the company's defined contribution registered pension plan on January
Janet started working for Quick Solutions located in Regina, Saskatchewan, on June 1, 1983. She joined the company's defined contribution registered pension plan on January 1, 1986 and was fully vested in this plan when her employment was terminated in October, 2023. As part of the termination package, Janet received a retiring allowance of $65,400.00. Janet had asked her employer to transfer the entire eligible amount to a RRSP and took the non-eligible amount in cash.
Calculate the eligible and non-eligible portions of Janet's retiring allowance as well as the income tax withheld on the amount received in cash. Include these amounts when completing Janet's T4 slip. The $28,650.00 income tax shown on the year-end payroll register does not include the tax amount withheld on the retiring allowance.
Complete Janet's T4 using the information from the year-end payroll register.
Note: The boxes in the Other Information area of the T4 must be completed in numerical order.
Find amounts in Box 22, Box 14, Box 50, Box 52, Code 34, Code 40, Code 66 and Code67 with PROPER FULL CALCULATIONS.
| Item | Amount |
| Regular earnings | $71,625.00 |
| Vacation pay | $3,776.00 |
| Bonus pay | $5,450.00 |
| Overtime pay | $1,986.98 |
| Wages in lieu of notice | $13,240.00 |
| Retiring allowance | $65,400.00 |
| Taxable meal allowance | $685.00 |
| Group term life insurance non-cash taxable benefit | $155.25 |
| Loan interest non-cash taxable benefit | $1,884.75 |
| Automobile non-cash taxable benefit | $1,853.47 |
| Accidental death and dismemberment non-cash taxable benefit | $57.45 |
| CPP contributions | $3,754.45 |
| EI premiums | $1,002.45 |
| Income tax | $28,650.00 |
| CPP pensionable earnings | $66,600.00 |
| EI insurable earnings | $61,500.00 |
| Charitable donations | $450.00 |
| Union dues | $725.00 |
| Employee contributions to the Registered Pension Plan | $4,845.00 |
| Employer contributions to the Registered Pension Plan | $4,845.00 |
| Registered Pension Plan number | 1234567 |
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