Income Received by Employees
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Determine
To ascertain / to come to a decision, such as by investigation or reasoning
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Identify the types of income that may be received by an employee.1
- Identify the types of income that are included in employment income.2
- Identify sources from which employment income may be found, such as:
- T4
- Paystub
- Direct deposit
- Tax return
- Record of employment
- Explain when the Canada Revenue Agency considers an employee to have received a taxable benefit.3
- Explain the factors the CRA may consider when determining if an employee benefit is taxable, such as:
- Type of benefit
- Reason the benefit is provided
- Benefit received
- Identify taxable benefits that may be added to an employee’s income.4
- Explain how the value of a taxable benefit is determined.5
- Explain the tax treatment of income received by an individual from an employer-paid group wage replacement plan.
- Estimate the tax impact to an employee from the receipt of a taxable benefit.
- Identify non-taxable benefits that will not be added to an employee’s income.6
- Explain the tax treatment of receiving each type of income.
- Estimate the tax impact of receiving each type of income.
REFERENCES
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Identify the types of income that may be received by an employee.1
- Identify the types of income that are included in employment income.2
- Identify sources from which employment income may be found, such as:
- T4
- Paystub
- Direct deposit
- Tax return
- Record of employment
- Explain when the Canada Revenue Agency considers an employee to have received a taxable benefit.3
- Explain the factors the CRA may consider when determining if an employee benefit is taxable, such as:
- Type of benefit
- Reason the benefit is provided
- Benefit received
- Identify taxable benefits that may be added to an employee’s income.4
- Explain how the value of a taxable benefit is determined.5
- Explain the tax treatment of income received by an individual from an employer-paid group wage replacement plan.
- Estimate the tax impact to an employee from the receipt of a taxable benefit.
- Identify non-taxable benefits that will not be added to an employee’s income.6
- Explain the tax treatment of receiving each type of income.
- Estimate the tax impact of receiving each type of income.
Additional Knowledge Expected of CFP Professionals
- Explain when a taxpayer will incur a taxable benefit related to the receipt of stock options through an employer.
- Identify how a salary deferral arrangement (SDA) affects the taxation of income.7
previous / Income Received by Individuals