It is the time for employee recognition.
How do you celebrate the success of your employees and/or contract workers?
(And do they need to pay tax on them?)
Non-taxable benefits and allowances
Cash or near-cash benefits or allowances always considered taxable benefits. (Near-cash? For employees, these need to be included as income when calculating statutory deductions.
Sometimes, you need to know if your benefits and allowances are taxable or non-taxable. Want to know more about the rules for offering incentives to your employees in a successful business year? We help find the payroll answers you need to run your business.
Are you an employee receiving benefits and allowances are taxable or non-taxable? To learn more about what is your taxable income or need help on your taxes? Sign Up – GET HELP! Filing Tax Returns
All expenses are business expenses incurred as a requirement of the employee conditions.
Non-taxable benefits
As a small supplier, you may provide benefits and allowances to your employees for health care, life insurance,
- Private Health Insurance Plans short or long-term disability paid by employee
- Employee Assistant Plans the payment for this plan is paid directly by employer
- Tuition non-cashable course offer for career advancement administration/management
You may also give each employee a tax-free long-term service award (up to $500) once every five years.
Non-taxable allowances
As a small business are you giving your employees an allowances for,
- Car Allowances limit to km drive for business purposes
- Meals daily meals allowances ($17.00 per day)
- Clothing a uniform, safety shoes.
The allowances can be included as an employees income for statutory deductions or taxable.
Note: these rules do not apply in the province of Quebec – different limits are in effect.
More about benefit or allowances?
If the profits of your company are consistent, you can offer incentives an employee for short or long-term service. If you are thinking about employee recognition – we can help.
More rules apply to benefits or allowances for all employees such as; health care, insurance plans, car allowance and loans than is covered in this article. If you’d like more information about taxes and/or payroll – contact Ina for a free 30 minutes consultation.
