Taxable Benefits

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When an employer provides a benefit to an employee in addition to salary and wages, they may need to include its value in the employee’s taxable income. A benefit can include a reimbursement of personal expenses, free use of property, goods, or services, or an allowance. The information on this page lists examples of taxable benefits and explains how to quantify them.

View the list of Taxable Benefit rates and examples below:

Taxable Benefits Listing - 2015
Taxable Benefit Details
Medical Coverage Employer portion of provincial health plan premiums (BC). Employer-paid premiums under private health insurance plans (Quebec only).
Group Life Insurance Employer-paid premiums on group life insurance.
AD & D Insurance A federally taxable benefit effective January 1, 2013. Historically employer-paid premiums for this benefit were only taxable in Quebec.
Company Car (owned) 2% of capital cost per month plus operating costs.
Company Car (leased) 2/3 of leasing cost plus operating costs.
Gifts/Awards Federal: $500 exemption for gifts and awards together, plus, a long service award of $500 every 5 years; $500 is now an exemption. Any amount in excess of $500 is taxable; No limit to number of non-cash gifts and awards an employee may receive in a year, provided FMV does not exceed $500. “Nominal” gifts and awards such as t-shirts, mugs, etc., are excluded from taxability. Quebec: $500 threshold treated as an exemption. No limit on number of gifts/awards provided. Gift certificates and smart cards qualify as a non-monetary gift.
Board and Lodging Difference between fair market value and any lower amount the employee pays.
Interest-free & Low-interest Loans Difference between interest that would have been paid for the year at the prescribed interest rates, and the amount of interest, if any, that the employee pays in the year.
Income Maintenance Plans Employer-paid premium to a non-group plan for
A – Sickness & Accident Insurance
B – Disability Insurance
C – Income Maintenance

For additional information about taxable benefits, contact your district taxation office and/or applicable publications. (i.e., CRA Employers’ Guide Taxable Benefits and Allowances (T4130)/Revenu Quebec - IN-253, Taxable Benefits)

Withholding Tax regulations on lump sum single payments made to an employee, or a withdrawal from an RRSP - 2015
  Less than $5,000 $5,001-15,000 $15,001+
Federal Tax In Quebec 5% 10% 15%
  All other provinces 10% 20% 30%
Provincial Tax In Quebec*  16% 20% 20%

*If paying bonus/retro and less than $14,300, may use 8% provincial tax rate.
Please check regulations to determine if lump sum rates apply.

Prescribed Interest Rates - 2015
Quarter Rate
1st Quarter 1%
2nd Quarter 1%
3rd Quarter 1%

The information on this web page is provided by Ceridian Canada Ltd. as a convenience to you. Ceridian does not warrant the accuracy or completeness of the information. Contents may be subject to change. Always check your circumstances with the proper authority for the most accurate and current information available.