COMMERCE 4FP3 Final Exam
, Who can OAS (Old Age Security) be paid to? - CORRECT ANSWERS-Must be 65
years of age, if you delay you get +0.60%.
Full for those who live in Canada for 40 years since 18 years old; partial for those who
lived in Canada for at least 20 years (non-residents).
What is the OAS clawback? - CORRECT ANSWERS-If you have income higher than
the floor level (77,580 in 2019), you must repay OAS at a rate of 15% of the income.
Is OAS a taxable benefit? - CORRECT ANSWERS-Yes, must be included in taxable
income.
Guaranteed Income Split (GIS) - CORRECT ANSWERS-Supplementary to OAS
pensioners (only residents)
Who receives full GIS? - CORRECT ANSWERS-Single, divorced, or widowed
pensioner of age of at least 65 with only source of income being OAS.
What is the GIS clawback? - CORRECT ANSWERS-If you have any income other than
OAS, your benefit is reduced by 0.50 per dollar.
Is GIS taxed? - CORRECT ANSWERS-No it is tax free.
Allowance Benefit - CORRECT ANSWERS-Available to spouse/common law partner of
OAS & GIS pensioner who is at least 60 to 64 years of age in order to reduce the
financial benefit of only having one low-income pensioner.
Is the allowance tax free? - CORRECT ANSWERS-Yes.
What is the normal retirement age for Canada Pension Plan? - CORRECT ANSWERS-
65
YBE - CORRECT ANSWERS-Year Basic Exemption - the first $3500 is exempt from
CPP calculations
When must you contribute to CPP? - CORRECT ANSWERS-Over the age of 18 and
earning more than $3500 in calendar year.
What is pension assignment? - CORRECT ANSWERS-Married couple sharing CPP
retirement in order to reduce income tax
What is the contribution rate for employers and employees for CPP? - CORRECT
ANSWERS-4.95%
What is the contribution rate for self-employed individuals for CPP? - CORRECT
ANSWERS-9.9%
, Who can OAS (Old Age Security) be paid to? - CORRECT ANSWERS-Must be 65
years of age, if you delay you get +0.60%.
Full for those who live in Canada for 40 years since 18 years old; partial for those who
lived in Canada for at least 20 years (non-residents).
What is the OAS clawback? - CORRECT ANSWERS-If you have income higher than
the floor level (77,580 in 2019), you must repay OAS at a rate of 15% of the income.
Is OAS a taxable benefit? - CORRECT ANSWERS-Yes, must be included in taxable
income.
Guaranteed Income Split (GIS) - CORRECT ANSWERS-Supplementary to OAS
pensioners (only residents)
Who receives full GIS? - CORRECT ANSWERS-Single, divorced, or widowed
pensioner of age of at least 65 with only source of income being OAS.
What is the GIS clawback? - CORRECT ANSWERS-If you have any income other than
OAS, your benefit is reduced by 0.50 per dollar.
Is GIS taxed? - CORRECT ANSWERS-No it is tax free.
Allowance Benefit - CORRECT ANSWERS-Available to spouse/common law partner of
OAS & GIS pensioner who is at least 60 to 64 years of age in order to reduce the
financial benefit of only having one low-income pensioner.
Is the allowance tax free? - CORRECT ANSWERS-Yes.
What is the normal retirement age for Canada Pension Plan? - CORRECT ANSWERS-
65
YBE - CORRECT ANSWERS-Year Basic Exemption - the first $3500 is exempt from
CPP calculations
When must you contribute to CPP? - CORRECT ANSWERS-Over the age of 18 and
earning more than $3500 in calendar year.
What is pension assignment? - CORRECT ANSWERS-Married couple sharing CPP
retirement in order to reduce income tax
What is the contribution rate for employers and employees for CPP? - CORRECT
ANSWERS-4.95%
What is the contribution rate for self-employed individuals for CPP? - CORRECT
ANSWERS-9.9%
