Part 1 (ITA 3)Division B Net Income to Division C Taxable Income to Taxes Payable for IndividualsITA 3(a)+ Bin # 1- Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets)+ Bin # 2 - Net Business & Property – losses carry forward 20 years and carry back 3 years (carrying baskets)+ Bin # 4 – Other IncomeITА 3 (b)+ Bin # 3 – Net Capital - losses carry forward for infinity and carry back 3 years (carrying basket)ITА 3 (c)Bin # 5 - Other Deductions= Sources of IncomeITА З (d)Losses in current year from Bins 1, 2, 4= Division B Net IncomeEquivalent to Capital Gains Deduction for Employee Stock OptionsITA 110Payments included to calculation Division B but not included for Division C (e.g. social assistance)Losses from other years (carrying baskets Bin #1 & 2)ITA 111Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b))= Division C Taxable Incomex Applicable Tax RatesΙΤΑ 118Tax Credits= Division E Taxes Payable for Individuals Ms. E. lives and works in Ontario as an internal auditor for a public corporation. She isrequired to travel for work. Ms. E. provides you with the following information for 2020:Gross SalaryIncome Tax WithheldCPP Contributions - EmployeeEl Contributions – EmployeeRegistered Pension Plan Contributions – EmployeeCharitable Donations$60,00015,9002,8988563,000100300Reimbursement Paid by Employee for Use of Company VehicleEmployer paid Ms. E.'s private health care premiums625Ms. E. has the use of a company car for the entire year. She drove the car a total of25,000 kilometers. 20% of those kilometers were for personal reasons. The companypaid the car's annual $3,200 operating costs and $4,500 lease payments.Ms. E's employer gives her a monthly travel allowance of $400 and requires her to payfor her own meals and accommodations while traveling for work. She spent $3,000 onmeals and entertainment, and $4,000 for accommodations.Ms. E. made a $1,500 contribution to a Registered Retirement Saving Plan. She paid$300 in professional dues, and paid a lawyer $200 attempting to collect wages owing toher from a previous employer.Required: Calculate Net Employment Income for 2020 (Division B, Subdivision a).Show all calculations.

The income which is determined by subtracting the deductions or exemptions from the gross amount of…

Answered: Ms. E. lives and works in Ontario as an…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 14EB: In EB13, you prepared the journal entries for Janet Evanovich, an employee of Marc Associates. You...

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Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
In EB13, you prepared the journal entries for Janet Evanovich, an employee of Marc Associates. You have now been given the following additional information: June is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions. Using the information from EB13 and the additional information provided: A. Record the employer payroll for the month of June, dated June 30, 2017. B. Record the payment in cash of all employer liabilities only on July 1.
In EA14, you prepared the journal entries for the employee of Toren Inc. You have now been given the following additional information: May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 70% of the health insurance premium. Using the information from EA14 and the additional information provided: A. Record the employer payroll for the month of May, dated May 31, 2017. B. Record the payment in cash of all employer liabilities only on June 1.
During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amount
JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL TAXES Francis Baker owns a business called Baker Construction Co. She does her banking at the American National Bank in Seattle, Washington. The amounts in her general ledger for payroll taxes and employees withholding of Social Security, Medicare, and federal income tax payable as of July 15 of the current year are as follows: Journalize the quarterly payment of the employee federal income taxes and Social Security and Medicare taxes on July 15, 20--, and the payments of the FUTA and state unemployment taxes on July 31, 20--.
During the year, employee Sean Matthews earned wages in the amount of 250,000. Discuss how the employees HI tax will differ from the employers HI tax for this employee.
JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL TAXES Angel Ruiz owns a business called Ruiz Construction Co. He does his banking at Citizens National Bank in Portland, Oregon. The amounts in his general ledger for payroll taxes and the employees withholding of Social Security, Medicare, and federal income tax payable as of April 15 of the current year are as follows: Journalize the quarterly payment of the employee federal income taxes and Social Security and Medicare taxes on April 15, 20--, and the payments of the FUTA and SUTA taxes on April 30, 20--.
Z was an employee with the following information from her employment in 2021. Salaries and wages - $57,500 RRSP contribution in the final months of 2021 - $5,500 Membership dues paid by Ms. Z’s employer on her behalf - $500 What is Ms. Z’s net employment income for 2021? ___________
b) Below is the details of payroll for Ms Amirah as at 31st March 2021. Employee's Category Conveyer Belt Operator RM 1,500 Basic rate Marriage status Single Allowance RM 543 Overtime RM 505 Monthly tax deduction 0 For year of assessment 2021 REQUIRED: Express calculation on following: i. ii. iii. Gross pay. Contribution (Employee Provident Fund and SOCSO) Net pay
1. In a journal entry for employee payroll, what type of account is credited to record each of the amounts withheld from employee earnings? Answer: A. Asset B. Liability C. Revenue D. Expense 2. Match the taxes or act to the year it was established. Social Security tax Employee Retirement Income Security Act Patient Protection and Affordable Care Act 2010 1974 1937 3. A _____ sets aside funds to be used for health-care expenses. Answer: A. flexible spending account B. Payroll Deduction IRA C. SIMPLE IRA plan D. 403(b) plan
2. Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee based on the following 2023 W-4 Information. Use the tables in IRS Publication 15- I. Using 2023 Form W-4 Employee Corn, A. Fogge, P. Felps, S. Carson, W Helm, M. More Marital than Step 2 Status 1 job? checked? S No S M M M 2 2 2 No No No No No No No Gross Additional Wage or deductitons Salary $0 $0 $0 $0 $0 Pay Frequency $ 675 weekly 1,960 weekly 1,775 biweekly 2,480 semi-monthly 5,380 monthly a. b. C. d. e. Amount to be Withheld Percentage Method Wage- Bracket Method

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Ms. E. lives and works in Ontario as an internal auditor for a public corporation. She is required to travel for work. Ms. E. provides you with the following information for 2020: Gross Salary Income Tax Withheld $60,000 15,900