Question

The following tax deductible amounts are subtracted from gross pensionable/taxable income before income taxes are applied to an employee's remuneration

a) Medical expenses
b) Union dues
c) Entertainment expenses
d) Travel expenses

Answer 1

Certain tax deductible amounts can be subtracted from gross pensionable/taxable income before income taxes are applied to an employee's remuneration. These include medical expenses, union dues, entertainment expenses, and travel expenses.

Step-by-step explanation:

In the context of employee remuneration, certain tax deductible amounts can be subtracted from gross pensionable/taxable income before income taxes are applied. These deductions include:

• Medical expenses: Any qualifying medical expenses incurred by the employee can be deducted from their taxable income. Examples of deductible medical expenses include doctor's visits, prescription medications, and medical procedures.
• Union dues: If the employee is a member of a labor union, the dues paid to the union can be deducted from their taxable income.
• Entertainment expenses: In certain cases, entertainment expenses incurred for business purposes may qualify as a tax deductible expense. However, there are strict rules and limitations on what can be considered as deductible entertainment expenses.
• Travel expenses: The employee may be able to deduct certain travel expenses related to their work from their taxable income. This can include expenses for transportation, lodging, meals, and other related costs.