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. D) 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. D) There is not sufficient information to calculate the tax consequences.
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 70IIP: In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine...
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Transcribed Image Text: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?
A) 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.
C) Kathleen will incur a taxable benefit of $2,700.
D) There is not sufficient information to calculate the tax consequences.
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