On April 1, 2018, Mary left her employment with FWT Limited to accept a position as salesperson

Fantastic news! We've Found the answer you've been seeking!

Question:

On April 1, 2018, Mary left her employment with FWT Limited to accept a position as salesperson with SLC Incorporated, until December 31, 2018. Details of the 2018 T4 were as follows:

Gross earnings $ 20,800.00

Commissions (included in gross earnings) 3,000.00

Less: deductions withheld at source CPP contributions 856.35

EI premiums 339.04

Income tax withheld 7,900.00

RPP contributions 1,250.00

In recognition of her excellent performance, SLC Incorporated gave Mary an award, which consisted of a weekend trip to Toronto, valued at $1,500. As a condition of her employment with SLC Incorporated, Mary was required to travel out of town for and pay the related expenses. She was also required to provide her own vehicle for business use. The company paid her a travel allowance in the amount of $200 per month and a vehicle allowance of $75.00 per month (for 9 months). The actual travel costs paid by Mary were as follows:

Accommodations $ 2,000

Train fares 650 Meals, while out of town 1,000 She also paid the following additional expenses to earn commissions: Entertainment of clients (not part of out-of-town travel costs) $ 1,200 Advertising 1,550 Office supplies 285 Mary continued to lease the vehicle she had been using while employed by FWT Limited. She also paid the total operating costs incurred from April 1, 2018 to August 31, 2018 in the amount of $1,150.00. Mary drove the vehicle a total of 10,000 kilometers from April 1, 2018 to August 31, 2018 of which 7,500 kilometers were for business use. On August 31, 2018, she cancelled the lease contract on this vehicle and purchased her own vehicle at a cost of $39,000 (includes HST). Mary drove the vehicle a total of 6,500 kilometers from September 1, 2018 to December 31, 2018 of which 4,875 kilometers were for business use.

The total operating costs paid by Mary during this period (122 days) were $920 and the interest she paid on the loan to purchase this vehicle was $1,300. Mary was also required by the terms of her employment with SLC Incorporated, to conduct business out of her home.

The total house expenses for the period February 1 to December 31, 2018 were as follows: Mortgage interest $ 5,000 Property taxes 2,400 Heat and hydro 1,800 Insurance 650 Minor repairs 500 Mary's office occupies approximately 200 square feet of the total 2,000 square feet of the house.

Required:

Calculate Mary’s net income from employment for 2018.