Per-kilometre allowance rates that we do not consider reasonable
If you pay your employee an allowance based on a per-kilometre rate that we do not consider reasonable because it is either too high or too low, it is a taxable benefit and has to be included in the employee's income.
If the allowance is taxable, it is also pensionable and insurable. Deduct CPP contributions, EI premiums, and income tax.
Reporting the benefit
Report the taxable allowance in box 14 "Employment income" and in the "Other information" area under code 40 at the bottom of the employee's T4 slip. For more information, see T4 - Information for employers.
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