Payroll Fundamentals 1 Questions and Answers Graded A+

Payroll Fundamentals 1 Questions and Answers Graded A+ How do RQ and CRA define a reasonable car allowance? - The allowance is solely based on business kilometers driven within a calendar year. - It adheres to government-prescribed guidelines: - $0.58 per kilometer for the first 5,000 business kilometers in the year ($0.62 in the Yukon, NWT, and Nunavut). - $0.51 per kilometer thereafter ($0.56 for Yukon, NWT, and Nunavut). - The employer does not reimburse the employee for expenses related to the same use of the vehicle. What activities are included in personal driving? - Vacation travel - Driving for personal errands or business - Commuting between home and work, even if the employer requires the employee to take the vehicle home What activities are included in business driving? - Traveling to meet existing and prospective clients, visiting points of call, and other office locations of the employer - When an employee travels directly from home to a work-related point of call, not the employer’s regular place of business - When an employee travels directly home from a work-related point of call What is meant by "availability" in relation to automobiles? The number of thirty-day periods during the current taxation year that the automobile is available for the employee’s use, implying that the employee has access to or control over the vehicle. How is an automobile defined? A motor vehicle designed primarily for carrying individuals on highways and streets, with a seating capacity of the driver and up to eight passengers. What happens if an employee receives a gift or award in cash? The amount is considered pensionable, insurable, and taxable, and is subject to all statutory deductions. When is an overtime meal allowance considered non-taxable according to RQ? - Overtime is performed at the employer’s request and lasts for at least two consecutive hours. - Overtime occurs rarely or occasionally. - Meal expenses are reimbursed upon presentation of receipts. - The reimbursed meal expenses or the value of the provided meal is reasonable. What are the four categories