On January 2, 2013, Mr. Sam Hill moves from Thunder Bay, Ontario to London Ontario, in order to begin employment with Northern Pike Ltd. (NPL). His salary for the year was $124,000. NPL withheld the following amount from his earnings:
Federal and Provincial Income Tax $ 28,500
Registered Pension Plan Contributions
(NPL Makes A Matching Contribution 3,200
EI Premiums 891
CPP Contributions 2,356
United Way Donations 450
Professional Association Dues 1,250
Other Information:
1. Sam's moving expenses totaled $5,500. NPL reimbursed Sam for 100 percent of these costs.
2. For the year ended December 31, 2013, Sam was awarded a bonus of $33,000. Of this total $24,000 was paid during 2013, with the remainder payable in January 2014.
3. NPL provided Sam with a car to be used in his employment activities and paid the operating costs for the year that totaled $8,100. The cost of the car was $39,550 including HST of $4,550. The car was available to Sam throughout 2013. He drove a total of 64,000 kilometers. This included 8,000 kilometers for personal use.
4. In negotiating his new position with NPL, Sam had asked for a $50,000 interest free loan as one of his benefits. NPL's human recourses department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of his 2014 salary as of November 1, 2013.
5. NPL provided Sam with the following additional benefits:
a. Allowance for acquiring business clothing $ 4,800
b. Squash Club Membership (no employment related usage) 2,900
c. Financial Advisor Fees 1,200.
6. Sam's previous employer was a Canadian controlled private corporation. In 2012, he was granted options to buy 500 of the company's shares at $20 per share. This option price was higher than the estimated fair market value of the company's shares at the time the option was granted. On January 2, 2013, Sam exercised these options. At this time the fair market value of the shares was $28 per share. Sam decides he wants to sell these shares for $28 per share.
7. Sam was required by his employer to acquire a laptop computer to be used in his employment duties. At the beginning of 2013, he purchased a computer at a cost of $1,356, including HST of $256. During 2013, his expenditures for computer related supplies was $150
Required: Determine Sam's net employment income for the year ending December 31, 2013.