ACTG 6730 Lecture Notes - Lecture 11: Cash Flow, Tax Avoidance, Independent Contractor
10 Aug 2018
School
Department
Course
Professor
Document Summary
Compensation: reward for labour input: examples, salaries, bonuses, stock options, fringe benefits, healthcare and dental, fitness allowance. To an employee, a compensation package is income, return on education investment, performance feedback, and a vital part of job satisfaction and personal identity. To an employer, compensation costs are usually the largest component of operating costs, but serve as a motivational tool that creates a material impact on strategy. Compensation planning cannot be done without tax planning, and vise-versa. Employees stop paying tax on pensions once they retire and start to receive the proceeds from the pension. When it says average tax rate in a question, they have already taken into account for all of the tax credits. Ei applies for those either fired for (cid:374)ot the e(cid:373)ployee"s doi(cid:374)g (cid:894)i. e. restructuri(cid:374)g(cid:895), or (cid:373)ater(cid:374)ity or paternity leave. Independent contractor not subject to ei, but still subject to cpp; have to pay double the cpp.
