Question

1. John Murphy: he is 40 years old and is married to a partner that has no income. He earns $3,600, semi-monthly. He is employed in the Province of Ontario.
2. Jane Robinson: she is 28 years old and single. She earns a salary of $1,000, semi-monthly. Her expected commission income for 2019 is $70,000 and her 2018 expenses against her commission income was $22,455. She is also employed in the Province of Ontario.

Required:

1. Prepare a TD1 for John and a TD1X for Jane. You can ignore the employees SIN # and addresses.
2. Go to CRA’s payroll calculator and calculate the net pay and all deductions for January 15, 2019.
3. Based on their two annualized incomes, calculate the amount of WSIB that the company would be required to remit for the year.

These parts are independent of the previous 3 parts.

4. On August 1, 2019 you fired a long-standing employee because he stole $40,000 from the company. What government forms do you have to fill out is you terminate an employee? What is the deadline for filing this form electronically?
5. What amounts of money do you owe an employee if they are terminated “with cause”?
6. Assume that you fired the employee so that you could replace him/her with your best friend. You had no valid “cause” to terminate the employee, he had always done a great job. Assuming that this fired employee had worked for your business for 4 years, what amount of severance would you owe him assuming his annual salary was $48,000?
7. You have one employee and you have to prepare his T4 for 2018 and related T4 Summary. The details are below:

Employer:           Dufresne Excavation Inc.

                             14 Bayswater Avenue

                             Ottawa, Ontario             

                             K1G4T2

                             A/C # 1234567891RP001

Employee:          Pierre Desjardins

                             64 Rue Montcalm

                             Ottawa, Ontario

                             K2P2G4

                             SIN# 147 543 645

Income & Deductions:

Salary                                               $95,700.00

CPP deducted                                 $2,593.80

EI deducted                                    $858.22

Income tax deducted                    $21,795.32        

Union Dues                                     $945.00             

Charitable donations                    $250.00

Answer 1

Answer :-

TD 1 For John

Total claim amount from employee's federal Form TD1

Minimum = 12069

Total claim amount from employee's provincial Form TD1

Minimum = 10582

Salary or wages income                                                        3,600.00         

Total cash income                                                                                                    3,600.00

Taxable income for the pay period                                        3,600.00          

Pensionable earnings for the pay period                                3,600.00          

Insurable earnings for the pay period                                    3,600.00          

Federal tax deduction                                   523.21              

Provincial tax deduction                               261.20              

Total tax deductions on income                                               784.41           

CPP deductions                                                                      176.16

EI deductions                                                                          58.32

Total deductions                                                                                                        1,018.89

                                                                                                                        ---------------------------

Net amount                                                                                                                2,581.11

Year-to-Date Amounts                 Inputted Value                                     Total for this Record       

Pensionable earnings                           0.00                                                     3,600.00         

CPP contributions                               0.00                                                      176.16           

Insurable earnings                                0.00                                                   3,600.00          

EI premiums                                         0.00                                                     58.32

TD1X For Jane

Salary or wages income                                                                                1,000.00              

Total cash income                                                                                                                            1,000.00

Taxable income for the pay period                                                           1,000.00              

Pensionable earnings for the pay period                                                               1,000.00              

Insurable earnings for the pay period                                                     1,000.00              

Federal tax deduction                                                    57.97                    

Provincial tax deduction                                                                35.22                    

Total tax deductions on income                                                                 93.19    

CPP deductions                                                                                                                43.56    

EI deductions                                                                                                     16.20    

Total deductions                                                                                                                              152.95

                                                                                                                                  ------------------------------

Net amount                                                                                                                                       847.05

Year-to-Date Amounts                 Inputted Value                                 Total for this Record      

Pensionable earnings                     0.00                                                        1,000.00              

CPP contributions                            0.00                                                        43.56    

Insurable earnings                           0.00                                                        1,000.00              

EI premiums                                       0.00                                                        16.20

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The Government forms one should have to fill out if one terminate an employee and the deadline for filing this form electronically :-

Whether your reasons for firing an employee are based on work performance, due to an economic layoff, or for another reason, following the proper termination procedures goes a long way in avoiding legal issues. Avoid firing someone on the spot, and use severance and release agreements to limit your liability.

Notice of termination

Federally regulated employees do not have to give their employer notice if they choose to quit. However, if the employer chooses to terminate a position, they must either:

• provide the employee with at least 2 weeks' written notice
• in lieu of such notice, pay the employee 2 weeks' regular wages

· What is an ROE?

· The ROE is the form—whether electronic or paper—that employers complete for employees receiving insurable earnings who stop working and experience an interruption of earnings. The ROE is the single most important document in the Employment Insurance (EI) program. Each year, more than 1 million Canadian employers fill out more than 9 million ROE forms for their employees.

· You must complete the ROE even if the employee does not intend to apply for EI benefits. On the ROE, you enter details about the employee's work history with your organization, including insurable earnings and insurable hours.

· There are two ROE formats available: you can transmit an ROE to us electronically, or you can complete a paper ROE form.

There are two different types of electronic ROEs, which are identified with serial numbers that start with the following letters:

• W – ROE Web
• S – ROE SAT

If you issue ROE on paper

If you issue ROEs on paper, you must issue an ROE within five calendar days of:

• the first day of an interruption of earnings; or
• the day the employer becomes aware of an interruption of earnings.

If you issue ROE electronically

If you issue ROEs electronically and your pay period is weekly, biweekly (every two weeks), or semi-monthly (twice a month, usually the fifteenth and last day of the month), you have up to five calendar days after the end of the pay period in which an employee's interruption of earnings occurs to issue an electronic ROE.

If you have a monthly pay period or 13 pay periods per year (every four weeks), you must issue electronic ROEs by whichever date is earlier:

• five calendar days after the end of the pay period in which an employee experiences an interruption of earnings; or
• 15 calendar days after the first day of an interruption of earnings.

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What amounts of money owe an employee if they are terminated “with cause” :-

When an employee is terminated, the form that the employer provides classifies the termination as “with cause” or “without cause”.

Without cause implies that the employee has been terminated through no fault of their own (for example, due to a lack of work or restructuring). When terminated “without cause”, you are automatically entitled to employment insurance (“EI”) benefits if you have accumulated the required number of hours of insurable employment. EI is designed to assist with bridging the gap until new employment is found.

On the other hand, if an employee has been terminated “with cause” collecting EI will be more difficult. The Employment Insurance Act states that an employee is ineligible for benefits if terminated for misconduct.  Decisions of federal courts and tribunals have defined this as a “reprehensible act or omission … made ‘wilfully’, i.e. consciously, deliberately or intentionally.” Wilful misconduct occurs when an employee has engaged in serious acts of wrongdoing and/or a breach of trust between the parties.

Often employers incorrectly classify behaviour such as poor work performance as “cause,” and this complicates the process of obtaining EI. The employer may believe that it is firing the employee for cause if the worker is incompetent. However, incompetence is not misconduct in the eyes of the law if the worker was doing his or her best. The worker is still eligible for EI in that case.

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Can employee be terminated without reason :-

Unfortunately, getting fired without a reason can happen to just about anyone. In many cases, unless there is a contract or bargaining agreement, employees are considered covered under employment at will, which means your employer doesn't need a reason to fire you.

In fact, it might be easier for them to get rid of you for no reason at all than to specify the cause, which could leave them open to accusations of discriminatory behavior. This sometimes works out in employees' favor, as some companies will term almost any separation a layoff, which often entitles workers to unemployment benefits, in order to avoid potential legal wrangling down the road.

But even if it beats the alternative—being fired without cause or a financial cushion—unemployment or severance isn't much consolation when you've been let go for no reason.

Employment at Will

For most states in the U.S., employment at will has become a standard precedent of employment contracts in recent years. At-will employment is an employer-employee agreement in which a worker can be fired or dismissed for any reason, without warning, and without explanation. Check with your state department of labor for regulations in your location.

Most at-will employees are informed and even required to sign waivers indicating their acknowledgment of being hired "at will." As a result, loss claims for being fired under this kind of agreement typically get denied by the court. Similarly, this type of employment also means that an employee has the right to leave their job without any reason or warning, although it is more polite and more socially acceptable to give at least two weeks' notice.

While it might seem unfair to be expected to give your employer two weeks' notice, when they can pretty much terminate you without notice – and often will, to prevent retaliation – remember that your reason for giving notice is actually a selfish one. You want to build a network of former colleagues who think well of you and would give you a recommendation without reservation. Giving notice helps to ensure that this will be the case.

Employment Agreements

Some employees are covered by an employment agreement or employment contract, which typically outlines terms of employment. These contracts may also detail the circumstances and terms under which an employee can be fired.

Other employees are covered by union or association agreements known as collective bargaining agreements. These agreements typically also detail when and how an employee can be fired.

Wrongful Termination

An employee can be wrongfully terminated if discrimination is involved in the termination if public policy is violated, if they’re a whistleblower, or if company policy states guidelines for termination and then the company fails to follow those guidelines.

You might also be wrongfully terminated if you were forced to resign because your employer made working conditions unbearable. This is called “constructive discharge,” and it includes harassment, mistreatment, and reduced pay for non-work-related reasons.

What to Do Next

What can you do if you've been fired? There are right ways and wrong ways to handle the situation. In short, you want to leave your position as gracefully as possible, under the circumstances, to minimize the fallout for your career. This means resisting the urge to storm out of the building or to say bad things about your boss or the company (either at that moment or later on, in job interviews).

The best thing to do is to take a beat to consider your situation, and then arm yourself with as many facts as possible. Find out how you’ll collect your remaining pay, for example, and what happens to any accrued vacation time or vested benefits.

Know your rights, especially if you think that you were wrongfully terminated.

Finally, don’t assume that you’re ineligible for unemployment. Check with your state unemployment office to find out whether you can still apply. Also, don't assume you have no recourse if you have been wrongly terminated. Depending on the circumstance and the law, you may be able to sue for wrongful termination.

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