Special or extra duty pay for police officers

Police forces regularly allow their police officers to provide security and other special or extra duty services to third parties for events.

We consider a third party that pays special or extra duty pay (SEDP) to police officers to be their employer. The third party has to do all of the following:

• withhold CPP contributions, EI premiums, and income tax from SEDP when the payment is made to a police officer
• remit these deductions to us
• report the SEDP and deductions on a T4 slip

However, we administratively allow the individual police forces, who are the regular employers of the police officers in question, the option to assume these responsibilities instead.

Under the administrative option, the police force can take into account the CPP contributions and EI premiums previously deducted from the police officers regular salary and SEDP when determining the maximum CPP pensionable and EI insurable earnings for the year.

To determine how much income tax to deduct, the police force should use the method described under Bonuses, retroactive pay increases or irregular amounts.

The police force has to keep proper records in order to accurately deduct amounts from the SEDP and regular salary and report these earnings and deductions on the police officer’s T4 slip.

Police officers may be able to claim allowable expenses against SEDP income. For more information, go to What is a taxable benefit.

For more information, go to Police forces and extra duty.

Forms and publications

• Guide T4130, Employers' Guide – Taxable Benefits and Allowances

• Form T2200, Declaration of Conditions of Employment

Related topics

• Police forces and extra duty