Income Received by Employees
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify the types of income that may be received by an individual.1
- Identify the types of income that may be received by an employee.2
- Identify the types of income that are included in employment income.3
- Identify sources from which employment income may be found, such as:
- Direct deposit
- Tax return
- Record of employment
- Explain when the Canada Revenue Agency considers an employee to have received a taxable benefit.4
- 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.5
- Explain how the value of a taxable benefit is determined.6
- Explain the tax treatment of income received by an individual from an employer paid group wage replacement plan.
- Explain when a taxpayer will incur a taxable benefit related to the receipt of stock options through an employer.
- 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.7
- Explain the tax impact of receiving each type of income.
- Estimate the tax impact of receiving each type of income.
- Identify how a salary deferral arrangement (SDA) affects the taxation of income.8
Glossary of Verbs (mouse over to see definition)
To state exactly the meaning of
To be aware of / to recognize and correctly name / to locate an appropriate resource
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
To note the similarities and differences between two or more things
To determine an approximate value for
To find the value using mathematics
To change from one form or purpose to another
To reach a conclusion or make a judgement through careful study
To give the meaning of / to construe or understand / to translate orally