BU357 Lecture Notes - Lecture 4: Income Statement, Term Life Insurance, Employee Benefits
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Stronger the relationship, more likelihood: ownership of tools test- more tools purchased, probably self- employed, less tools purchased- probably employee, chance of profit/risk of loss test. Individual getting paycheck no matter what: connected to profitability- control the final profit of the business, more the ability to say yes or no to a job. Integration or organization test- how individual fits into organization. Inclusions: section 5: salary, wages, and gratuities, section 6: other income inclusions arising from employment, section 7: stock option benefits, deductions, section 8: deductions allowed against employment income. If employer/client incurs a cost and the employee receives a pe(cid:396)so(cid:374)al (cid:271)e(cid:374)efit, (cid:449)e(cid:859)(cid:396)e looki(cid:374)g at a pote(cid:374)tial i(cid:374)(cid:272)lusion. If instead the employee incurs a cost, then whatever that cost (cid:396)elated to e(cid:373)ploy(cid:373)e(cid:374)t, (cid:449)e(cid:859)(cid:396)e looking at a potential deduction: taxation year, reported on calendar-year basis. If your personal kilometres are less than 20,004 km/year, then you may get a reduction.
