Notes Chapter2.pdf

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Ch. 2 Employment Income
+ Salary
+ Commission Income
+ Taxable Benefits (paid by employer)
- Allowable Deductions (paid by employee)
= Net Employment Income
A-1
AUTOMOBILE BENEFITS
Standby Charge – Owned car
2% x Cost of Car x number of months
Operating Cost Benefit
Personal km x 24¢
If car is leased by employer, the standby charge
2/3 x monthly lease x number of months
(exclude any insurance cost)
A – 2
AUTOMOBILE BENEFITS
Compute Employment use of Automobile
- km for Employment = %
Total km Driven
If Employment use > 50%
Operating Cost Benefit can be reduced to ½ Standby Charge (if
lower)