Who can tell me who won the MNF game this week?

What is the premise that underlies both the Federal and Ontario Tax system?

Both systems can be described as graduated or progressive systems in that the more an individual earns in taxable income, the higher their personal tax rate.

What is meant by the term “Taxable Income” and how does it differ from a person’s total income?

Taxable Income = total income from all Sources – allowable deductions

What is the concept of a surtax?

A surtax is a tax paid on your taxes. In Ontario it is known as the “Fair Share Health Care Levy”

$28,000

$32,300

$40,000

$58,000

$63,200

$64,500

$95,000

$263,000

Jeff Martin Case Who has read the case and prepared solutions? Please get into your groups and discuss your ideas.

Immediate Problem What action should be taken to deal with Jeff Martin’s attempted theft of company property?

What is a policy? A policy is a guide to managerial decision- making for recurrent situations.

Why do organizations need to develop policies for recurrent situations?

A well defined policy means that manager’s do not have to rethink how a particular situation should be handled each time that it occurs. The mgr simply applies the policy that has been developed to deal with the recurrent situation.

Policy vs. Rule A policy is not the same as a rule. Good policies realize that circumstances surrounding recurrent situations will vary from case to case and allow for managerial discretion. A rule on the other hand is stated as an absolute and does not allow any flexibility in its interpretation

Primary Problem The company policy regarding employee theft – “Anyone caught stealing from the firm will be immediately dismissed without severance pay” – is extremely rigid. In reality it is not a policy, it is a rule

Decision Criteria It should be fair. Any disciplinary action taken should be in keeping with the nature of the offence. A basic tenet of good discipline is that it should be corrective not punitive. It should reinforce the company’s position that any form of employee theft is unacceptable. It should show that mgmt appreciates outstanding employee service.

Alternatives Apply company policy and dismiss Jeff without severance. Ignore the entire incident in light of Jeff’s double shifting and past record.

Recommendation The best solution should entail some form of disciplinary action for Jeff’s attempted theft. Any organizational system of progressive discipline should attempt to use the lowest level of discipline necessary to invoke a permanent change in employee behaviour.

Implementation Jeff’s immediate supervisor should be informed of all of the details surrounding the incident. Supervisor should convene a meeting with Jeff and deliver a verbal warning. Jeff should be asked to acknowledged before a witness that he understands why he is being disciplined and the consequences associated with a second violation.

Implementation cont. The supervisor should try to maintain some sense of perspective by acknowledging Jeff’s significant contributions to the firm. Most importantly mgmt must realize that their policy is far too rigid and needs to be rewritten.

Due Next Week Tax sets #2 and #3 Twin City Credit Union Case Should have registered for the Stock Market Competition by the. $25 online at invest.wlu.ca Read the Stock Market Game Player’s Manual