Orla McCool is a tax client of yours, employed at Derry Drugs Ltd. (Derry), a pharmaceutical...
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Orla McCool is a tax client of yours, employed at Derry Drugs Ltd. (Derry), a pharmaceutical company. She provides you with the following information to help complete her 2022 tax return: $97,000 3,500 953 19,500 1) Gross salary Amounts withheld at source: CPP El Income tax Union dues Charitable donations Premiums for private health/dental plan RPP contribution In addition to the amount contributed by the employee above, Derry contributed $2,000 towards Orla's health/dental plan and $5,400 towards her RPP. 2) Orla is required to use her personal automobile. Derry provides an automobile allowance which Orla is expected to use to cover the car expenses she incurs personally. Oria keep a log of kilometres driven for work. This log showed the following for 2022: Odometer reading, beginning of year 54,367 83,982 19,411 . nt . • Odometer reading, end of year Kilometres driven for work 3) Orla is also required to travel out of town for work and receives a $2,000 allowance for each trip. This allowance is considered unreasonable. 4) Details of Orla's automobile/travel allowances and expenses are available in Appendix 1 (T2200) and Appendix 2 (Orla's 2022 Expenses - Excel Spreadsheet). Required a) Calculate Orla's 2022 net employment income. b) Briefly explain why any amount presented above has been omitted from your calculation. Orla McCool is a tax client of yours, employed at Derry Drugs Ltd. (Derry), a pharmaceutical company. She provides you with the following information to help complete her 2022 tax return: $97,000 3,500 953 19,500 1) Gross salary Amounts withheld at source: CPP El Income tax Union dues Charitable donations Premiums for private health/dental plan RPP contribution In addition to the amount contributed by the employee above, Derry contributed $2,000 towards Orla's health/dental plan and $5,400 towards her RPP. 2) Orla is required to use her personal automobile. Derry provides an automobile allowance which Orla is expected to use to cover the car expenses she incurs personally. Oria keep a log of kilometres driven for work. This log showed the following for 2022: Odometer reading, beginning of year 54,367 83,982 19,411 . nt . • Odometer reading, end of year Kilometres driven for work 3) Orla is also required to travel out of town for work and receives a $2,000 allowance for each trip. This allowance is considered unreasonable. 4) Details of Orla's automobile/travel allowances and expenses are available in Appendix 1 (T2200) and Appendix 2 (Orla's 2022 Expenses - Excel Spreadsheet). Required a) Calculate Orla's 2022 net employment income. b) Briefly explain why any amount presented above has been omitted from your calculation.
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Orlas net employment income Total income Gross salary Taxable benefits Gross salary 91000 Employment ... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
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