Chpt 2

Question 0

Alina works as a babysitter caring for a baby for several hours a day in the parents home. The parents determine the hours and the duties she performs. Is she employed or self-employed?

Answer 0

Most likely employed because the parents control what work she goes and when she does it.

Question 1

Employment income included income from an office Give 3 examples of occupations considered offices.

Answer 1

1. Judge
2. Mp
3. MLA
4. Director of a corporation

Question 2

Gretchen babysits in her own home she determines the hours she is available how much she will charge and whom she will accept as Clients. Is she employed or self employed ?

Answer 2

Likely self employed

She controls the hours she works and Clint’s she accepts and amounts she charges

Question 3

Explain the purpose of the information slip.

Answer 3

Summarizes the amount and type of income paid or credited to taxpayer

Also, if there are any amount of tax and other specified amounts deducted

May also indicate a deduction or credit the taxpayer is entitled

Question 4

What information slip must an employer provide to an employee?

Answer 4

T4 statement of remuneration paid

Question 5

Name the types if income that is reported in box 14 of t4 slip

Answer 5

1. Salary or wages
2. Commission
3. Bonuses
4. Vacation pay
5. Taxable allowances and benefits
6. Corporate directors fees
7. Gratuities or honoraria

Question 6

What would you say to a tax payer who asks why should I declare my tips?

Answer 6

Because you have to report all income which is taxable

If you don’t report it you could face penalties

Question 7

Complete the section of the t1 general reproduced below. T4 slip shows $10,300 in box 14 and received $2,350 tips

Total income.
Employment income. 101______
Commissions included 102______
Other employment income 104_____

Answer 7

101. • 10,300
       102 - blank
102. • 2, 350