Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer. Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00. The organization's head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is $4,750,000.00. You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the employee's coverage for provincial healthcare and the organization's payroll expense for provincial health taxes.
Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer. Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00. The organization's head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is $4,750,000.00. You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the employee's coverage for provincial healthcare and the organization's payroll expense for provincial health taxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
102.
Subject :- Accounting
Transcribed Image Text:Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is
considering closing its Calgary, Alberta office and transitioning the staff of that location to permanent work from home
employees. The employees home offices would not be considered a permanent establishment of the employer.
Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00.
The organization's head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is
$4,750,000.00.
You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the
employee's coverage for provincial healthcare and the organization's payroll expense for provincial health taxes.
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