Benefits and allowances chart
This chart indicates whether you need to deduct Canada Pension Plan (CPP) and employment insurance (EI) from the taxable allowances and benefits discussed in this guide, and shows which codes you should use to report them on the employee's T4 slip. The chart also indicates whether the GST/HST has to be included in the value of the taxable benefit for income tax purposes. Cash reimbursements and non-cash benefits are subject to GST/HST, unless they are for exempt or zero-rated supplies. Cash allowances are not subject to GST/HST.
|Taxable allowance or benefit||Deduct
Code for T4
|Automobile and motor vehicle allowances – in cash||yes||yes||40||no|
|Automobile standby charge and operating expense benefits – non-cash||yes||no||34||yes|
|Board and lodging, if cash earnings also paid||yes||2||30||3|
|Cellular phone and Internet services – in cash||yes||yes||40||yes|
|Cellular phone and Internet services – non-cash||yes||no||40||yes|
|Child care expenses – in cash||yes||yes||40||4|
|Child care expenses – non-cash||yes||no||40||4|
|Counselling services – in cash||yes||yes||40||5|
|Counselling services – non-cash||yes||no||40||5|
|Disability-related employment benefits – in cash||yes||yes||40||6|
|Disability-related employment benefits – non-cash||yes||no||40||6|
|Discounts on merchandise and commissions on sales – non-cash||yes||no||40||yes|
|Educational allowances for children – in cash||yes||yes||40||no|
|Employment insurance premium rebate – in cash||yes||yes||40||no|
|Gifts and awards – in cash||yes||yes||40||no|
|Gifts and awards – non-cash and near-cash||yes||no||40||yes|
|Group term life insurance policies – employer-paid premiums – non-cash||yes||no||40||no|
|Housing allowance, clergy – in cash||7||yes||30||no|
|Housing allowance – in cash||yes||yes||30||8|
|Housing benefit, clergy, rent-free or low-rent – non-cash||7||9||30||8|
|Housing benefit, rent-free or low-rent – non-cash||yes||9||30||8|
|Housing loss – in cash||yes||yes||40||no|
|Interest-free and low-interest loans||yes||no||36||no|
|Loans – Home purchase||yes||no||36||no|
|Loans – Home relocation||yes||no||36||no|
|Loans – Forgiven – in cash||yes||yes||40||no|
|Meals – Overtime allowances – in cash||yes||yes||40||no|
|Meals – Overtime – in cash||yes||yes||40||yes|
|Meals – Overtime – non-cash||yes||no||40||yes|
|Meals – subsidized – non-cash||yes||no||40||yes|
|Medical expenses – in cash||yes||yes||40||10|
|Medical expenses – non-cash||yes||no||40||10|
|Moving expenses and relocation benefits – in cash||yes||yes||40||yes|
|Moving expenses and relocation benefits – non-cash||yes||no||40||yes|
|Moving expenses – non-accountable allowance over $650 – in cash||yes||yes||40||no|
|Municipal officer's expense allowance||yes||no||40||no|
|Parking – in cash||yes||yes||40||no|
|Parking – non-cash||yes||no||40||yes|
|Pooled registered pension plan contributions (paid to a plan not registered with the Minister of National Revenue)||yes||yes||40||no|
|Power saws and tree trimmers; rental paid by employer for employee-owned tools – in cash||yes||yes||40||yes|
|Premiums for income maintenance plans and other insurance plans – non cash||yes||no||40||no|
|Premiums under provincial hospitalization, medical care insurance, and certain federal government plans – in cash||yes||yes||40||no|
|Premiums under provincial hospitalization, medical care insurance, and certain federal government plans – non-cash||yes||no||40||no|
|Professional membership dues – in cash||yes||yes||40||11|
|Professional membership dues – non-cash||yes||no||40||11|
|Recreational facilities (in house) – non-cash||yes||no||40||yes|
|Recreational facilities or club membership dues – in cash||yes||yes||40||yes|
|Registered retirement savings plan (RRSP) contributions – in cash||yes||12||40||no|
|Registered retirement savings plan (RRSP) administration fees – non-cash||yes||no||40||11|
|Scholarships and bursaries – in cash||yes||yes||40||no|
|Security option (cash-outs)||yes||yes||13||no|
|Social events – in cash||yes||yes||40||no|
|Social events – non-cash||yes||no||40||yes|
|Spouse or common-law partner's travelling expenses – in cash||yes||yes||40||no|
|Spouse or common-law partner's travelling expenses – non-cash||yes||no||40||yes|
|Tax-Free Savings Account – contributions – in cash||yes||12||40||no|
|Tax-Free Savings Account – administration fees – non-cash||yes||no||40||11|
|Tool allowance – in cash||yes||yes||40||no|
|Tool reimbursement – in cash||yes||yes||40||yes|
|Transportation passes – in cash||yes||yes||40||yes|
|Transportation passes – non-cash||yes||no||40||yes|
|Transportation to and from the job – in cash||yes||yes||40||yes|
|Transportation to and from the job – non-cash||yes||no||40||yes|
|Travel assistance in a prescribed zone – in cash||yes||yes||32||yes|
|Travel assistance in a prescribed zone – non-cash||yes||no||32||yes|
|Travelling allowances other employees, unreasonable||yes||yes||40||no|
|Tuition fees – in cash||yes||yes||40||11|
|Tuition fees – non-cash||yes||no||40||11|
|Uniforms and protective clothing – in cash||yes||yes||40||yes|
|Uniforms and protective clothing – non-cash||yes||no||40||yes|
|Utilities allowance, clergy – in cash||7||yes||40||no|
|Utilities allowance – in cash||yes||yes||40||no|
|Utilities benefit, clergy – non-cash||7||no||40||8|
|Utilities benefit, rent-free or low-rent – non-cash||yes||no||40||8|
1. Except for security options, if a non-cash taxable benefit is the only form of remuneration you provide to your employee, there is no remuneration from which to withhold deductions. For more information, see Payroll deductions and contributions.
2. If no cash earnings are paid in a pay period, do not deduct EI premiums.
3. Meals and short term accommodations are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
4. Child care expenses are generally exempt of GST/HST. If taxable, include the GST/HST in the value of the benefit.
5. Certain counselling services are subject to the GST/HST. If the services you pay are subject to the GST/HST, include the GST/HST in the value of the benefit.
6. Disability-related employment benefits are generally taxable for GST/HST. If taxable, include the GST/HST in the value of the benefit.
7. If you reduce the income used to calculate income tax deductions by the amount of the clergy residence deduction (including utilities), you may also reduce the pensionable earnings used to calculate CPP contributions by the same amount.
8. Long-term accommodations are generally exempt of GST/HST and utilities are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
9. If it is a non cash benefit, it is insurable if it is received by the employee in addition to cash earnings in a pay period. If no cash earnings are paid in the pay period, it is not insurable.
10. Some medical expenses are subject to the GST/HST. For more information, see Medical expenses.
11. Certain fees and certain contributions are subject to the GST/HST. If the fees or the contributions you pay are subject to the GST/HST, include the GST/HST in the value of the benefit.
13. Enter the taxable security option benefit under code 38. If eligible, enter the amount of the security options deduction under code 86 and either code 39 or 41, as applicable.
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