Uniforms and protective clothing
Your employee does not receive a taxable benefit if either of the following conditions apply:
- You supply your employee with a distinctive uniform he or she has to wear while carrying out the employment duties
- You provide your employee with protective clothing (including safety footwear and safety glasses) designed to protect him or her from hazards associated with the employment
If you reimburse or pay an accountable advance to your employee to buy uniforms or protective clothing and require receipts to support the purchases, the reimbursement or accountable advance is not a taxable benefit if:
- The cost of the uniforms or protective clothing is reasonable
- By law, the employee has to wear the protective clothing on the work site
If you pay an allowance to your employee for the cost of protective clothing and you did not require receipts to support the purchases, the allowance is not a taxable benefit if all of the following conditions apply:
- By law, the emplyee has to wear the protective clothing on the work site
- The employee used the allowance to buy the protective clothing
- The amount of the allowance is reasonable
You may pay a laundry or dry cleaner to clean uniforms and protective clothing for your employee or you may pay a reasonable allowance to your employee (when he or she does not have to provide a receipt). You may also reimburse the employee for these expenses when he or she presents a receipt. If you do either of these, the amounts you pay are not taxable benefits for the employee.
Include any GST/HST that applies to value of this benefit.
Where the benefit is taxable, it is also pensionable. Deduct income tax and CPP contributions. If the taxable benefit is paid in cash, it is insurable. Deduct EI premiums. If it is a non cash benefit, it is not insurable. Do not deduct EI premiums.
Reporting the benefit
Report the taxable benefit in box 14 "Employment income" and in the "Other information" area under code 40 at the bottom of the T4 slip. For more information, see T4 slip.
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