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Quiz: Employment income

7 questions

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1 An employee earned a bonus in December that was paid in January. Which year is it taxed in? The year it was earned Split between the two years The year it was received Either, at the employee's election

Answer key unconfirmed — rests on 1 unverified claim.

2 An employee wants to deduct expenses she incurred doing her job. What does she need? To have been required by the contract of employment to incur them and not reimbursed, with the employer certifying the conditions on Form T2200, reporting the claim on Form T777 Nothing beyond claiming the amount; employment expenses are self-certified The employer's verbal confirmation and receipts Only receipts for the amounts

Answer key unconfirmed — rests on 3 unverified claims.

3 A server asks whether cash tips need to be reported when they do not appear on her T4. Yes — tips and gratuities are employment income and are reportable whether or not they appear on a T4 Only tips paid electronically through the employer Only where the total exceeds a reporting threshold No — only amounts on the T4 are reportable

Answer key unconfirmed — rests on 2 unverified claims.

4 An employee drives from home to the office and asks whether the mileage is deductible. Yes, where the distance exceeds a threshold No — commuting between home and a regular place of work is not deductible Yes, where the employer does not provide parking Yes, at the prescribed per-kilometre rate

Answer key unconfirmed — rests on 1 unverified claim.

5 A departing employee receives a retiring allowance. How is it treated? Not as ordinary employment income; in defined circumstances it may be transferred to an RRSP based on years of service As a capital receipt, and therefore not taxable As employment income, but taxed in the year the employment ended regardless of payment As ordinary employment income with no special treatment

Answer key unconfirmed — rests on 1 unverified claim.

6 A taxpayer received wage-loss replacement benefits and asks whether they are taxable. Taxable only where the employer administered the plan It depends on who paid the premiums for the plan Always taxable Never taxable, as they replace lost income rather than being earned

Answer key unconfirmed — rests on 1 unverified claim.

7 An employee worked for three employers in a year and over-contributed to CPP and EI. What happens? The excess is recovered through the employee's return The excess is forfeited The employers reconcile it between themselves CRA refunds the last employer, who pays the employee

Answer key unconfirmed — rests on 1 unverified claim.

Unanswered questions are marked wrong. There is no partial credit.