Acco340Lecture 2-3 - Employment Income

Note payments made to the employer by the employee

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NOTE: Payments made to the employer by the employee for the use of the auto can reduce the  standby benefit, any excess can reduce the operating expense benefit,   any remaining excess,  cannot be deductible and is lost.    2. Operating Benefit        (irrespective of actual operating expenses) i) Personal Km driven X Prescribed Rate- for 2010= 24 cents per Km     *    ii) if auto is used more than 50% for employment duties, then can elect an     operating benefit of 50% of the Reduced Standby Benefit instead of 24 cents per Km NOTE: Payments made to the employer by the employee in respect to operating expenses, can   reduce the operating expense benefit, however,  payments in excess of the operating expense   benefit      can not reduce the standby benefit or any other benefit                                      EMPLOYEE PROVIDED  AUTOMOBILE Allowances paid to employees for the use of their private automobiles for employment duties are  not taxable for the employees and deductible for the employer,  as long as the km allowance is   reasonable. For 2010, the prescribed tax-free km allowance   ( other than Yukon, NWT & Nunavut and   for  persons not employed primarily in selling or leasing automobiles)  is:   - 52 cents*      per Km for the first 5,000 Km - 46 cents*     per Km for excess Km  * DO NOT CONFUSE WITH THE 24 cents PER KM  USED TO COMPUTE THE EMPLOYEE TAXABLE BENEFIT FOR  OPERATING EXPENSES PAID BY AN EMPLOYER FOR AN AUTOMOBILE PROVIDED BY THE EMPLOYER   1. Employee Insurance Benefits  (not subject to GST)                        i) Group Life Insurance Plan Benefit        ( benefit is paid upon death) Cost of premiums paid by the employer to ensure employee’s life  is a taxable benefit Any employee contributions to the Group Life Insurance Plan are  not deductible  
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Death benefits received are  not taxable ii) Group Disability (aka group sicknes or accident) Insurance Plan Benefit        (benefit is paid if unable to work) Cost of premiums paid by an employer for a group insurance plan covering sickness or accident,  are      not an       employee taxable benefit as per ITA 6(1)(a)(i).  Any employee’s contributions, in part or in whole, made to help fund the plan,  are not deductible by the   employee, unless a taxable disability benefit is received.
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  • Fall '10
  • Mastromonaco
  • Quebec, taxable benefit, ITA, employee taxable benefit

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