Question: Mari has a defined benefit pension plan based on final average earnings with her employer. She has a pension benefit of 1.5% of her final
Mari has a defined benefit pension plan based on final average earnings with her employer. She has a pension benefit of 1.5% of her final earnings and $35,000.00 of pensionable earnings for this year. Calculate her pension adjustment for 2019. Freehold Foods, an Alberta organization, is preparing its year-end information slips. Laurie had worked for the company in their Calgary office from July 1982 until her employment was terminated last year. When her employment was terminated, she was fully vested in the companys defined contribution registered pension plan, which she joined in July 1984. Upon termination of employment, Laurie received a retiring allowance of $60,000.00. Laurie had her employer transfer the entire eligible amount to a RRSP and took the non-eligible amount in cash. Calculate the eligible and non-eligible portions of Lauries retiring allowance as well as the income tax withheld on the amount received in cash. Include these amounts when completing Lauries T4 slip. The $22,960.00 income tax shown on the year-end payroll register does not include the tax amount withheld on the retiring allowance. Complete Lauries T4 using the information from the year-end payroll register below. Note: The boxes in the Other Information area of the T4 must be completed in numerical order. You can hide/show this information by clicking SCENARIO above. Item Amount Regular earnings $57,400.00 Vacation pay $6,028.00 Bonus pay $4,750.00 Overtime pay $570.34 Taxable clothing allowance $725.00 Wages in lieu of notice $13,950.00 Retiring allowance $60,000.00 CPP contributions $2,593.80 EI premiums $858.22 Income tax $22,960.00 CPP pensionable earnings $55,900.00 EI insurable earnings $51,700.00 Union dues $560.00 Charitable donations $375.00 Employee contributions to the Registered Pension Plan $1,750.00 Employer contributions to the Registered Pension Plan $1,425.00 Registered Pension Plan number 1234567 Loan interest non-cash taxable benefit $1,489.85 Automobile non-cash taxable benefit $1,536.49 Group term life insurance non-cash taxable benefit $1,090.00 Accidental death and dismemberment non-cash taxable $41.25
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
