Chp 3 - Year-End - Federal Flashcards
What do you need to do before completing the T4s & T4As?
Reconcile the accounts for source deductions.
True or false, the PD7A form has a credit balance throughout the year?
True
True or false, as payments are remitted to the CRA during the year, your source deductions account is credited?
True
True or false, when the T4 & T4A slips are filed at year-end, the source deduction accounts are debited?
True
When are taxable benefits subject to source deductions?
As they are received or enjoyed by the employee.
What is a pension adjustment?
The measure of the benefit an individual earns in a year in a regular RPP or DPSP.
True or false, the pension adjustment reduces the amount an individual can contribute to their RRSP in the following year?
True
What is benefit entitlement?
The portion of a member’s pension that is considered to have accrued during the year.
What is a forfeited amount?
The amount a member ceased to have rights to in a deferred profit sharing pension plan.
What is a pension credit?
The value of the benefit the member earns
True or false, the pension adjustment formula is used to calculate a pension credit for a defined benefit pension plan?
True
Pension adjustment formula for defined benefit pension plan
Pension adj = (Benefit entitlement x9) - 600
Pension adjustment formula for defined contribution pension plan
Employer contributions + employee contributions + reallocated forfeitures + additional voluntary contributions
Pension adjustment formula for deferred profit sharing pension plan
Employer contributions + reallocated forfeitures
Pension adjustment formula for combination plans
Total of all pension credits for each component
