Determine if a benefit is taxable

Before you calculate, determine if a benefit is taxable and if you need to deduct CPP, EI and income tax.

Overview: What is a taxable benefit.

Type of benefits and category
Type of benefits	Category
Automobile provided by the employer	Travel expenses
Automobile or motor vehicle benefits – Allowances or reimbursements provided to an employee for the use of their own vehicle	Travel expenses
Motor vehicle provided by the employer	Travel expenses
Board, lodging, housing and utilities expenses Includes: free or subsidized board and lodging allowance or reimbursement for housing or utilities provided to an employee who is a participant or member of a sports team or recreational program	Board, lodging, housing and utilities Travel expenses
Travel expenses Includes: employee works part-time employee is a salesperson, an agent selling property or negotiating contracts, or a member of the clergy employee is a member of the Canadian Forces employee is travelling away from your municipality or metropolitan area employee is travelling within your municipality or metropolitan area employee is travelling on a business trip employee's spouse or common-law partner travelling on a business trip	Travel expenses
Meal expenses Includes: free meals overtime meals subsidized meals meals part of a collective agreement	Board, lodging, housing and utilities Travel expenses
Housing and utilities expenses – Provided to a member of the clergy or of a religious order	Board, lodging, housing and utilities Travel expenses
Board, lodging and travel expenses – Provided to an employee in remote locations	Board, lodging, housing and utilities Travel expenses
Board, lodging, housing, utilities and travel expenses – Provided to an employee in special work sites, including prescribed zones	Board, lodging, housing and utilities Travel expenses
Moving and relocation expenses	Board, lodging, housing and utilities
Parking	Transportation
Transportation and airline passes	Transportation
Child care expenses	Personal and family needs
Cell phone and internet services	Work-related expenses
Counselling services and tax preparation	Personal and family needs
Benefits provided to an employee who has a severe or prolonged impairment (disability)	Personal and family needs
Educational assistance Includes: scholarship or bursary, training course or educational program provided to your employee free tuition or reduced tuition fees, educational allowance, free or subsidized school services provided to your employee's family members	Work-related expenses
Security (stock) options	Personal and family needs
Gifts, awards, and long-service awards	Work-related expenses
Loans and employee debt	Work-related benefits
Loyalty or other points programs	Work-related expenses
Medical expenses	Personal and family needs
Merchandise discounts and commissions from personal purchases	Work-related expenses
Employee benefit plans Includes: death benefits amount paid after death to an employee's estate superannuation or pension	Plans
Insurance plans Includes: premium for group life insurance premium for provincial hospitalization or medical care insurance, or federal hospitalization or medical care insurance for government of Canada employees and their dependants serving outside of Canada premium or contribution paid to income maintenance, sickness, accident, or disability insurance plans premium paid to private health services plan (PHSP) premium rebate for employment insurance (EI) top-up disability payment	Plans
Contributions to savings and pension plans Includes: first home savings accounts (FHSA) pooled registered pension plan (PRPP) registered education savings plan (RESP) registered disability savings plan (RDSP) registered pension plan (RPP) registered retirement savings plan (RRSP) retirement compensation arrangement (RCA) tax-free savings account (TFSA)	Plans
Professional membership dues	Work-related expenses
Recreational facilities and club dues	Work-related expenses
Social events and hospitality functions	Work-related expenses
Event tickets	Work-related expenses
Tool reimbursements, allowances and rental payments	Work-related expenses
Uniforms, protective clothing, safety and special clothing	Work-related expenses

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Date modified:: 2024-07-05