Question

Understanding the difference between a cash taxable allowance, a cash taxable benefit and a non-cash taxable benefit is critical when explaining the calculation of net pay to an employee. In your own words, explain whether each allowance and benefit is or is not subject to Canada/Québec Pension Plan (C/QPP) contributions, Employment Insurance (EI) premiums, Québec Parental Insurance Plan premiums and income tax. Provide an example of a cash taxable allowance, a cash taxable benefit and a non-cash taxable benefit.

Answer 1

solution

A money assessable stipend for the most part a sum that paid by boss to worker for a particular reason. As a rule for notwithstanding pay or wages. To help the worker for specific costs without knowing the genuine expense.

A stipend, for example, vehicle remittances determined dependent on separation driven.

A money assessable advantage is merchandise or administrations that business pays to their workers or their family. For example, lease free settlement possessed by the business. An advantage incorporates a recompense or a repayment of representative's costs for example individual in nature.

A money assessable advantages are one kind of compensation subject to Québec Parental Insurance Plan premiums (QPIP).

Assessable advantages and assessable stipends incorporated into gross work pay for estimation of the Canada/Québec Pension Plan (C/QPP) commitments.

In the event that a non-assessable advantage is paid by the business, the general principle is that no Employment Insurance (EI) premiums are expected and announcing required on the giving an account of the ROE (Return on Equity).

A non-assessable advantage identified with an open travel pass or a para-travel go as to which business repay a sum to a worker. This pass gave to the representative isn't liable to QPIP premiums.