Superannuation Income Tax Question

by Denis Horner
(Auckland)

Superannuation Income Tax Question

Superannuation Income Tax Question

I have a client that has put aside x$ for an employee's super fund if they stay employed up till a certain period.

They collect if they stay to that point. Q1 Is the fund taxable in the hands of the employee and Q2 - there for the employer be paying PAYE. Now or when paid?

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Jan 20, 2024
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starstarstarstarstar 		Tax Implications of Employee Super Funds
by: BB

Tax on Employee Super Fund:

The super fund set aside for employees, contingent on their continued employment, is generally taxable when received by the employee. It forms part of their assessable income.
PAYE Obligation for Employer:

The employer is required to deduct PAYE (Pay As You Earn) tax when the super fund amount is paid to the employee, as it constitutes income. This withholding should happen at the time of payment.

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Superannuation Slip

Hello

I have official receipts for monthly payments from public works and government service Canada.

On receipt it says:
This is to certify receipt of funds for payment of for payments of your contributions to the Superannuation Account or the Public Superannuation Fund and has my plan number following this info above.

On other side of recept under service buyback contribution the amt of $113.14 in the post 1989 box.

What line do I claim this on for a deduction?

And would I include this amt on line 206 also?

Thanks

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Jan 20, 2024
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starstarstarstarstar 		Claiming Deductions for Superannuation Contributions
by: BB

Claiming Deduction for Superannuation Contributions:

You can claim the deduction for your superannuation contributions on your income tax return. Report this on Line 207 (Deduction for elected split-pension amount) of your Canadian tax return.
Line 206 - Deduction for elected split-pension amount:

You should include the amount of $113.14 on Line 206. This line is specifically for the deduction related to the elected split-pension amount.

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