I have to solve a problem for school purposes and I'm stuck as I cannot find any relevan information.
Here is the summary of the problem. The employee was terminated in July as the company has cash flow issues. The company is the wholly owned Canadian subsidiary of a US company. She agreed on 2 months payment as payment in lieu of notice of employment termination. Her monthly gross salary is $6,000 or $4,431 net of tax and payroll deductions. One month after her termination a deposit of $9,500 was made to her bank account but no pay slip was received. The payment was made by the parent company (the US one) rather than the Canadian one who was her employer. In Feb next year she receives her T4 but the $9,500 is not included. What would be the tax implications for the employee, former employer (Canadian subsidiary), and parent company (the US company)?