Kathleen contributes 3% of her $45,000 of annual earnings into an RRSP. As part of her total remuneration package, Kathleen's employer matches her RRSP contribution and applies it to her RRSP. What tax impact, if any, will the employer's contribution to Kathleen's RRSP have on her income? OA) Kathleen will incur a taxable benefit of $1,350. B) No tax impact, as the benefit is considered non-taxable when paid by the employer. OC) Kathleen will incur a taxable benefit of $2,700. OD) There is not sufficient information to calculate the tax consequences.
Kathleen contributes 3% of her $45,000 of annual earnings into an RRSP. As part of her total remuneration package, Kathleen's employer matches her RRSP contribution and applies it to her RRSP. What tax impact, if any, will the employer's contribution to Kathleen's RRSP have on her income? OA) Kathleen will incur a taxable benefit of $1,350. B) No tax impact, as the benefit is considered non-taxable when paid by the employer. OC) Kathleen will incur a taxable benefit of $2,700. OD) There is not sufficient information to calculate the tax consequences.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 26P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT