Tax Advice Tax Tips Our Services E-File Newsletter Contact



About us
Directions to our office
Career Opportunities
Our Servives
Usefull links and tools
Our Disclaimer
 

   Employment Income

   TREASURY BOARD NONTAXABLE TRAVEL ALLOWANCES
Effective October 1, 2005, the Treasury Board increased non-taxable government travelling allowances by 5 cents per kilometre as follows:
Effective
10/1/05
4/1/05
7/1/05
 
Alberta
49.0
44.0
43.5
British Columbia
49.0
44.0
43.0
Manitoba
47.0
42.0
40.5
New Brunswick
49.5
44.5
43.5
Newfoundland and Labrador
52.5
47.5
47.5
Northwest Territories
54.5
49.5
49.0
Nova Scotia
49.5
44.5
44.0
Nunavut
54.5
49.5
49.0
Ontario
50.5
45.5
45.5
Prince Edward Island
49.0
44.0
44.0
Quebec
53.5
48.5
47.5
Saskatchewan
46.0
41.0
40.0
Yukon
57.0
52.0
50.5

Also, the total meal and incidental allowance increased from $73.90 to $74.65 per day.

For details see website. This could be a starting point for providing non-taxable travel allowances to employees.

    SELF-ADMINISTERED SUPPLEMENTARY UNEMPLOYMENT BENEFIT (SUB)PROGRAMS
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).

   TOP ONE HUNDRED EMPLOYERS
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.

   PROFESSIONAL DEVELOPMENT PAYMENTS
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.

   GIFT CERTIFICATES
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.

   AUTOMOBILE BENEFITS
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.

   CRITICAL ILLNESS INSURANCE
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.

©2009, Doug Nicholson* & Co.,CGA *Professional Corporation
100-1780 Wellington Ave, Winnipeg, Manitoba R3H 1B3.