Effective October 1, 2005, the Treasury Board increased non-taxable government travelling allowances by 5 cents per kilometre as follows:

The basic Employment Insurance (EI) program can be enhanced with an employer top-up plan called Supplementary Unemployment Benefit (SUB) Programs.

Employer payments go on top of the $413/week EI pays, bringing the employee closer to his/her pre-disability earnings.

All plans are registered with HRSDC (Human Resources and Skills Development Canada). Reference material can be found on the HRSDC website “Guide to SUB Plans”. (www.hrsdc.gc.ca).

The October 22, 2005 issue of the National Post included an article on the top one hundred employers and provided information on benefits provided to their employees such as:

1. Maternity and compassionate leave employment Insurance top-ups,
2. Tuition subsidies,
3. Fitness plans,
4. Health Plans,
5. Product discounts, and
6. Scholarships to employees.

In an October 17, 2005 External Technical Interpretation, CRA notes that when an employee takes employer-paid training primarily for the benefit of the employer, there is no taxable benefit to the employee whether or not the training leads to a degree, diploma or certificate.

For example, it was noted that the Ontario Ministry of Education provides School Boards with grant monies for “Teacher and Support Staff Development” (TSSD). $512 (maximum) is paid tax free to each employee for professional development.

In an October 20, 2005 External Technical Interpretation, CRA notes that cash or near-cash gifts and awards are not covered by their policy to permit tax-free gifts and awards of up to $500 per year to an employee. CRA considers near-cash gifts and awards to include securities, gold nuggets, and gift certificates.

Employer-owned automobiles made available to employees require reporting of a taxable benefit on the employees’ T4s for the standby charge and the operating benefit. This may be a complicated calculation. For example, if the personal kilometres are less than 20,000 and the automobile is used more than 50% for business, the standby charge and operating benefits are reduced accordingly.
CRA provides a valuable online tool to assist in calculating taxable benefits at auto benefits-calculator.

An employer may provide “group critical illness insurance” for employees which provide tax deductible premiums to the employer, without a taxable benefit to the employee. Also, when cash is paid to the employee under a Direction to Pay, it may be non-taxable to the employee.