ACCT $2028$ Winter $2024$ Communication Assignment

Emilia Natashy

Emilia Natashy is employed full time by the Coco Cookie Company $($Coco$)$ as the Director of Strategic Initiatives.

As part of her annual compensation, Emilia is provided with a $$1,000$ Enrichment Allowance.

Coco provides a list of approved items which qualify for the allowance. Emilia will be reimbursed upon submission of original receipts.

Emilia would like to minimize her tax liability related to the use of the allowance. However, she also notes that some items on the approved list would have more value to her than others. Emilia is in the top Federal and Provincial tax bracket for Ontario.

Required:

After reviewing the list of approved expenditures, prepare a memo to Emilia.

The memo should:

Explain the general principles of taxation of employment benefits.

Recommend the expenditures which would minimize the tax liability for Emilia.

Quantify the tax liability should Emilia not follow your recommendations.

Your communication should be appropriate for the audience. The grade for the assignment will be weighted $50\%$ for technical accuracy and $50\%$ for audience appropriateness.

Coco Cookie Company Approved expenditures for Enrichment Allowance

Educational advancement

Educational courses & related travel

Peer networking

Conferences & related travel

Memberships

Annual dues for professional organizations

Office wellness

Ergonomic office products $$ must be demonstrable ergonomic benefit

Resource materials

Print or electronic resources

Electronics

PC$/$Laptop$,$ tablets, cellular phones $$ including accessories

Health

Fitness membership and home gym equipment

Note:

All expenditures must be relevant to employee responsibilities.

Employee will retain ownership of all products purchased under the Enrichment Allowance program.