Dec 14th, 2019 9:46 pm
Dec 14th, 2019 10:11 pm
Dec 15th, 2019 10:33 am
Dec 15th, 2019 10:56 am
Dec 15th, 2019 12:08 pm
is it possible for the employer to label bonus as some other income but not as employment income?ml88888888 wrote: ↑ Unless it is not reported on your T4.
Dec 15th, 2019 12:21 pm
Dec 15th, 2019 12:38 pm
But I guess any legitimate business will report a bonus amount as big as $15000 on T4.ml88888888 wrote: ↑ Unless it is not reported on your T4.
Dec 15th, 2019 12:58 pm
Not sure if applicable in your case but 25 years ago my employer had a Defined Benefit retirement plan where they contributed 1.5% of the income to the DB. The pension was based on the 3 best/highest years income. We had a bonus plan as well that could be taken either mid December OR mid January. One year I took the bonus both January AND December and then neither the next year. This was repeated for several years, obviously paying more tax but thinking long term. In your case, if applicable, your pension would be based on “best” years incomes of $105K, not $90K.
Dec 15th, 2019 6:15 pm
because if it is labeled as something else you will still pay tax on it but it wont count towards rrsp limit.ProductGuy wrote: ↑ No, they won’t do it. Why do you ask? Trying to save on taxes? Won’t happen since they have withhold taxes at source.
Dec 15th, 2019 6:15 pm
This is a good one, thanks for posting.mrct1944 wrote: ↑ Not sure if applicable in your case but 25 years ago my employer had a Defined Benefit retirement plan where they contributed 1.5% of the income to the DB. The pension was based on the 3 best/highest years income. We had a bonus plan as well that could be taken either mid December OR mid January. One year I took the bonus both January AND December and then neither the next year. This was repeated for several years, obviously paying more tax but thinking long term. In your case, if applicable, your pension would be based on “best” years incomes of $105K, not $90K.
I retired 20 years ago and the additional pension total has been substantial. If this scenario could work for you, maybe ask the HR Dept. if you could delay the bonus until January……………
Dec 15th, 2019 6:49 pm
Don’t you want it to count towards an increased rrsp room? Bonus does not eat up your rrsp limit, it actually creates more. Only if you put the bonus in your rrsp then it eats up your rrsp room regardless of what it is coded on your pay stub. It’s like a regular rrsp contribution.
Dec 16th, 2019 7:23 am
I had a $50k bonus that was not recorded on my T4. The payroll person screwed up. So it is possible. I asked to have the entire $50k be put into an RRSP
