Question:

Michelle started working for Quick Solutions located in Regina, Saskatchewan, on June 1, 1982. 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, 2019. As part of the termination package, Michelle received a retiring allowance of $67,400.00. Michelle 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 Michelle's retiring allowance as well as the income tax withheld on the amount received in cash. Include these amounts when completing Michelle's T4 slip. The $23,370.00 income tax shown on the year-end payroll register does not include the tax amount withheld on the retiring allowance.

Complete Michelle's T4 using the information from the year-end payroll register.

Item Amount Regular earnings $58,425.00 Vacation pay $3,526.00 Bonus pay $3,450.00 Overtime pay $3,336.98 Wages in lieu of notice $14,240.00 Retiring allowance $67,400.00 Taxable meal allowance $885.00 Group term life insurance non-cash taxable benefit $138.00 Loan interest non-cash taxable benefit $1,659.75 Automobile non-cash taxable benefit $1,653.47 Accidental death and dismemberment non-cash taxable benefit $67.45 CPP contributions $2,748.90 El premiums $860.22 Income tax $23,370.00 CPP pensionable earnings $57,400.00 El insurable earnings $53,100.00 Charitable donations $450.00 Union dues $645.00 Employee contributions to the Registered Pension Plan $3,345.00 Employer contributions to the Registered Pension Plan $3,345.00 Registered Pension Plan number 1234567