Question: Sheldon Daly is district sales manager for a Vancouver-based distribution company. He has requested that you help him establish his employment income for tax purposes
Sheldon Daly is district sales manager for a Vancouver-based distribution company. He has requested that you help him establish his employment income for tax purposes for the 2020 taxation year. He has provided the following information for 2020. 1 Sheldon's base salary was $ 103.800 As sales manager, he is entitled to a small commission on the sales made by staff under his supervision He received $9,600 in such commissions, which included $1300 of commissions earned in late 2019 The December 2020 commissions had been computed as $1800 and were received in January 2021. The employer deducted the following from his salary in 2020 Canada Pension Plan contributions $2898 Employment Insurance premiums 856 Private medical plan premiums 300 2. In addition to the above, the employer paid the following to Sheldon or on his behalf $ Travel allowance (hint unreasonably either high or low not allowed) 3.200 Group term ife insurance premiums for $50,000 coverage 900 Premiums for a private medical insurance plan 300 3. Sheldon's spouse died in late 2019, leaving him to support three children. In 2020, he hired a person at a cost of $9,000 to provide baby-sitting services for the two youngest children Following his spouse's death Sheklon suffered from depression As a result, his employer paid the cost of $3,000 for counseling services and also provided him with orline tickets costing $ 3100 so that he and the children could attend a relaxation resort in 2020 4 Sheldon uses his own vehicle for employment duties. The vehicle (class 10.3 hd an undepreciated capital cost of $ 19.000 at the end of 2019 Sheldon paid $5.300 in 2020 to operate the car and used 6 70% of the time for employment duties CCA (CRA allowed depreciation) rate on this type of car is 30% 5. Sheldon incurred the following additional costs relating to his employment Promotion (meals) $ 1100 Purchase of a cellular phone 500 Lease costs for laptop computer Golf club dues 1.000 Hotel costs out of town travel 5700 700 Sheldon Daly is district sales manager for a Vancouver-based distribution company. He has requested that you help him establish his employment income for tax purposes for the 2020 taxation year. He has provided the following information for 2020. 1 Sheldon's base salary was $ 103.800 As sales manager, he is entitled to a small commission on the sales made by staff under his supervision He received $9,600 in such commissions, which included $1300 of commissions earned in late 2019 The December 2020 commissions had been computed as $1800 and were received in January 2021. The employer deducted the following from his salary in 2020 Canada Pension Plan contributions $2898 Employment Insurance premiums 856 Private medical plan premiums 300 2. In addition to the above, the employer paid the following to Sheldon or on his behalf $ Travel allowance (hint unreasonably either high or low not allowed) 3.200 Group term ife insurance premiums for $50,000 coverage 900 Premiums for a private medical insurance plan 300 3. Sheldon's spouse died in late 2019, leaving him to support three children. In 2020, he hired a person at a cost of $9,000 to provide baby-sitting services for the two youngest children Following his spouse's death Sheklon suffered from depression As a result, his employer paid the cost of $3,000 for counseling services and also provided him with orline tickets costing $ 3100 so that he and the children could attend a relaxation resort in 2020 4 Sheldon uses his own vehicle for employment duties. The vehicle (class 10.3 hd an undepreciated capital cost of $ 19.000 at the end of 2019 Sheldon paid $5.300 in 2020 to operate the car and used 6 70% of the time for employment duties CCA (CRA allowed depreciation) rate on this type of car is 30% 5. Sheldon incurred the following additional costs relating to his employment Promotion (meals) $ 1100 Purchase of a cellular phone 500 Lease costs for laptop computer Golf club dues 1.000 Hotel costs out of town travel 5700 700
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
