MGAC50H3 Lecture Notes - Lecture 2: Canada Pension Plan, Unemployment Benefits, Independent Contractor
16 Sep 2017
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Individual would prefer to be classified as independent contractor instead of an employee: employee earning employment income can only deduct limited items under section 8 of the act, taxpayer prefers to be self-employed for tax purposes. If employee pays insurance premium not taxable. If employer pays insurance taxable benefits: paying for insurance tax not taxable. If while you work you take a course for the benefit of the employer, the course is not a taxable benefit: gift cards considered cash. If an item is cash and a material amount, it is taxable: special occasion, non-cash, under not taxable, cash amounts are taxable, frequent-flyer points not taxable. If discount isn"t below cost and available to all employees at work it isn"t a taxable benefit income tax folio: get interest deduction on investment of loan. If you immediately can"t make money on stock you buy, then it is deductible by one-half: employment income computation.
