• An overtime meal allowance of up to $17 for two or more hours of required overtime adjacent to regular working hours, if the overtime is infrequent or occasional (generally once or twice a week, outside of peak periods). If you are working at a temporary site, some expenses associated with travelling and working at that site might not be taxable if they apply for a reasonable and determinate period of time — e.g., a week, a month or a year — generally up to about a two-year maximum (although this could vary), and there is a scheduled date of return to your regular place of employment.
• The cost for distinctive uniforms, protective clothing or footwear required to be worn during employment, including related laundry expenses in Brampton.
• Reimbursement of moving expenses upon relocation according to Accountant in Brampton.
• Receipt of non-cash gifts and awards (e.g., for Christmas, wedding, birthday) in one year to an arm’s length employee (e.g., not a proprietor, shareholder or their relatives), for certain material items and under certain conditions, up to a total value not exceeding $500, including all applicable taxes by accountant at Brampton.
• Receipt of a separate non-cash long-service/anniversary award of a material nature up to $500 in total value, including applicable taxes, provided such an award is for at least five years of service, or it has been at least five years since the last such service award was presented in Brampton.
• Employer-sponsored special events, such as dinners or other activities for all employees, are not taxable to individual employees, as long as the total cost for that event does not exceed $100 per person.
• Use of the employer’s recreational facilities, or employer-sponsored membership in a social or athletic club, where such membership is considered all or primarily beneficial to the employer (despite the employer not being able to deduct the cost of such fees) according to Accountant in Brampton. The CRA has ruled that there is no taxable benefit to you if your employer TIP arranges for the purchase of a discounted fitness pass membership from a third party by accountant Brampton.
• An employer-mandated medical examination required as a condition of employment.
• Employer-sponsored personal counseling services in respect of the mental or physical health of an employee or a person related to an employee, or concerning re-employment or retirement.
• Employer-sponsored travel where the trip was undertaken predominantly for business reasons in Brampton.
• Employer-sponsored transportation to a work site where public or personal vehicles are not permitted – e.g., with respect to security or other reasons.
• Work-related employer-sponsored training costs.
• Tuition and related fees, if the course is required for employment and is primarily for the employer’s benefit by accountant Brampton.
• A reasonable per kilometer automobile allowance.
• Meal expenses, if required to be away from the employer’s municipality on company business for at least 12 hours.
• Board, lodging and transportation to a special worksite involving duties of a temporary nature, or to a remote worksite venue away from the general community where an employee is required to be a reasonable distance from the principal residence for at least 36 hours.
• A reasonable employer-provided allowance for an employee’s child to live at and attend the nearest suitable school, if one is not close to where the parent must reside for employment purposes. If you are awarded a gift through your company’s social committee, and that
committee is not funded or controlled by your employer, the gift is generally considered to be non-taxable. However, if that committee is funded or controlled by the employer, it is generally considered a taxable benefit in Brampton. If your employer provides you with an allowance to purchase an electronic device (e.g., a tablet computer) for use at work, this amount is generally considered a taxable benefit. To avoid this, consider transferring ownership of the device to the employer and ensuring that any personal use is incidental by accountant in Brampton.
• The value of scholarship awards provided by an employer for the benefit of the spouse and/or children.
• Employer paid expenses for moving employees and family, along with household effects, out of a remote location upon the termination of employment.
• Exclusive on-site child-care services provided by employers to all employees for minimal or no cost.
SPECIAL CONSIDERATIONS RELATED TO TAXABLE AND NON-TAXABLE EMPLOYMENT INCOME
Other current issues with respect to the taxability and non-taxability of employee benefits include, but are certainly not limited to, the following points:
• An employer-provided computer and internet service might not represent a taxable benefit under certain circumstances if employees require such a service to carry out their business obligations; however, the costs associated with purchasing an employer-funded computer that is also used for personal reasons would likely result in a taxable benefit.
• Taxpayers who receive an arbitration award from their employer for reasons such as a collective agreement breach to compensate for lost wages, or receive retroactive payments as a result of a decision such as pay equity — a component of which might constitute damages — should consult an accountant in Brampton to determine the appropriate tax treatment for that payment.
• In some cases, the courts may be more lenient toward an employee than a shareholder in terms of any benefit amount deemed to be non-taxable. For instance, employees might be able to exclude 100 per cent of membership fees in a golf club if the membership is primarily for the benefit of the employer. On the other hand, corporate shareholders might have to apportion the tax-exempt and taxable portion of the fees between business and personal use, respectively. Taxpayers — especially those with dual employee/shareholder roles — should clarify the proper tax treatment with their accountant in Brampton.
• Although child-care expenses that have been paid for by an employer are generally considered a taxable benefit, if an employee is required to travel out of town on employment-related business and, as a result, incurs additional child-care expenses that are reimbursed by the employer, that amount will not be a taxable benefit.
• Where an educational institution provides subsidized or free education to an employee or to the spouse or children, the CRA’s position is that the fair market value of that tuition must be included in the employee’s income, with the difference between that and the discounted tuition being a taxable benefit. The courts generally follow this same fair market approach when assessing the value of employee benefits, but have sometimes used other valuations.
• If a spouse accompanies an employee on a business trip, and the employer reimburses these travel expenses, that payment is a taxable benefit to the employee unless the spouse was engaged primarily in business activities on behalf of the employer during that trip according to accountant in Brampton.
• Certain accumulated personal credit arising from loyalty incentives (e.g., frequent flyer programs during business trips) are taxable to an employee and included in income, especially when a company credit card was used. However, in other instances and under certain circumstances involving a personal credit card, such as points accumulated through loyalty programs, it may be non-taxable.
• Certain members of the clergy or religious organizations are entitled to exclude from income reasonable allowances with respect to transportation expenses incurred while discharging their duties.
• Employer-provided benefits to employees with a disability, such as transportation costs, including parking, are generally not taxable by accountant in Brampton.
• An employee life and health trust (ELHT) has been established by the federal government which, if such a plan is offered by the employer, could have tax implications in terms of providing either taxable or non-taxable benefits for certain employees under certain conditions.
For more information please see your accountant at Brampton or call 905-794-8283.