CTP_(08)_Chapter_02 - Chapter Two Employment Income 2008,...

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© 2008, Clarence Byrd Inc. 1 Chapter Two Employment Income
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© 2008, Clarence Byrd Inc. 2 Employment Income General Concept Results From Employment Without Regard To Source Includes Director’s Fees
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© 2008, Clarence Byrd Inc. 3 Employment Income Employment Income In The Act Section 5 - Definitions Section 6 - Inclusions Section 7 - Stock Options Section 8 - Deductions
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© 2008, Clarence Byrd Inc. 4 Cash Vs. Accrual ITA 5(1) - Income from office or employment — Subject to this Part, a taxpayer’s income for a taxation year from an office or employment is the salary, wages, and other remuneration, including gratuities, received by the taxpayer in the year.
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© 2008, Clarence Byrd Inc. 5 Bonus Arrangements Example - On July 25, 2008, Martin Ltd. declares a bonus of $100,000 in favour of one of its employees, Roger Jones. The Company’s year end is July 31.
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© 2008, Clarence Byrd Inc. 6 Example - Case A Bonus Is Paid Prior To January 28, 2009 Employer Deducts In Year Ending July 31, 2008 Employee Includes In Income When Received
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© 2008, Clarence Byrd Inc. 7 Example - Case B The Bonus Is Paid After January 27, 2009, But Before July 31, 2011 Employer Deducts When Paid Employee Includes When Received
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© 2008, Clarence Byrd Inc. 8 Example - Case C Salary Deferral Arrangements Employer Deducts When Accrued Employee Includes When Accrued
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© 2008, Clarence Byrd Inc. 9 Employee vs. Self-Employed Employee Perspective Availability Of Deductions Withholding vs. Instalments CPP and EI Fringe Benefits Tax Evasion
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© 2008, Clarence Byrd Inc. 10 Employee vs Self-Employed Employer Perspective No CPP, Payroll Taxes, Or EI No Benefits Pay GST
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© 2008, Clarence Byrd Inc. 11 Employee vs Self-Employed Determination Control Ownership Of Tools Chance of Profit/ Risk of Loss Ability To Subcontract Or Hire Assistants Responsibility For Investment And Management
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This note was uploaded on 07/24/2011 for the course ACCT 3335 taught by Professor Chong during the Spring '11 term at Kwantlen Polytechnic University.

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CTP_(08)_Chapter_02 - Chapter Two Employment Income 2008,...

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