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what are 4 implications when someone is an employee to the employer

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pays share of CPP/EI, withholds and remits income tax, provides benefit plan, provides severance

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what are 2 implications when someone is an employee to the employee

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pays share of CPP/EI, protected from termination without cause or compensation

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16 Terms

1
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what are 4 implications when someone is an employee to the employer

pays share of CPP/EI, withholds and remits income tax, provides benefit plan, provides severance

2
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what are 2 implications when someone is an employee to the employee

pays share of CPP/EI, protected from termination without cause or compensation

3
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what are 4 implications when someone is self employed to the employer (payor)

does not pay CPP/EI, does not withhold and remit income tax, does not pay benefits, no severance

4
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what are 4 implications when someone is self employed to the employee (contractor)

pays CPP, provides own benefit plan, remits income tax instalments, can be terminated at any time for any reason

5
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what are 4 general implications when someone is self employed

income reported on accrual bases, registered for gst/hst, all classes of cca are available, expenses can be deducted against all income sources

6
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what are 4 general implications when someone is an employee

income recorded on cash basis, expenses limited to commission income, can only deduct cca on motor vehicles and aircraft, gst/hst rebate

7
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what are the 3 economic reality tests

control, tools, profit/loss

8
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describe the control test

who has the right to give orders on the work

9
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describe the ownership of tools test

who bears the cost of the tools to do the job

10
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describe the profit/loss test

is there an opportunity to make a profit/loss and is the worker paid per job

11
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what are the badges of trade when deciding income/capital treatment for transactions (8)

relation to business, nature of activity, nature of assets, number and frequency, length of ownership, supplemental work, causes of disposition, corporate objects or partnership agreements

12
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what is the implication to an individual when a sale is classified as income

fully taxed, no PRE eligibility if home sold

13
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what is the implication to an individual when a sale is classified as capital

taxed at 50%, PRE eligible where home is sold

14
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what is the implication to a CCPC when a sale is classified as income

fully taxed as active business income, taxed at the low small business rate if earned in canada

15
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what is the implication to a CCPC when a sale is classified as capital

taxed at 50% and included in aggregate investment income, non taxable part goes into capital dividend account

16
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what is the anti flipping tax rule

gain on residential property owned less than one year is classified as income