Question

1. Which of the following payments is not a taxable benefit to the employees?

Multiple Choice

• Premiums for group term life insurance.

• Gym membership fees to improve the employee's general health and job performance.

• Public transit pass costs for the employee to get to and from work.

• Physical health counselling services fees.

2. An employer paid the following amounts for the employee: preparation of personal tax return, to minimize stress ($300); laptop computer to use at work and at home ($1,500); day care provided at employer's premises ($2,000); and low-rent housing ($5,000). What would be the total taxable benefit to be included in employment income?

Multiple Choice

• $5,300

• $7,000

• $7,300

• $8,800

3. The employer pays the employee $2,100 that is considered a taxable benefit. The employee is in a 40% tax bracket. What would be the equivalent salary the employee would need to receive to purchase the benefit for themselves?

Multiple Choice

• $5,250

• $3,500

• $2,100

• $840

4. An employer provided benefit that is taxable to the employee includes...

Multiple Choice

• Group sickness or accident insurance plans.

• The cost of a suit for a salesperson.

• Private health services plans.

• Supplementary unemployment benefit plans.

Course- Introduction to Taxation

Answer 1

1. Premiums for group term life insurance.
2. CALCUTION OF total taxable benefit to be included in employment income
prepration of personal tax return = $300
low-rent housing =$5000
day care = $2000
would be taxable in hands of employee
hence, $7300 would be taxable

3. $5250 ($2100/40%) would be the equivalent salary the employee would need to receive to purchase the benefit for themselves.

4.Benefit that is taxable to the employee includes...
Supplementary unemployment benefit plans.
Course- Introduction to Taxation
Private health services plans.