Language selection

Government of Canada / Gouvernement du Canada

Search

Sign in

Sign in

Determine if a benefit is taxable

Steps

  1. Select the link in the following table to determine if the specific benefit or allowance you provided is taxable. If the benefit or allowance is taxable, you have to include the value in your employee's income.

    Overview: What is a taxable benefit

  2. If the benefit or allowance is taxable, the following table summarizes if you must withhold CPP or EI on the value of the benefit, which codes to use to report the benefit or allowance and if GST/HST must be included in the value of the benefit.

    Special situation for CPP: Only remuneration is a non-cash taxable benefit
Type of benefits and category
Step 1 Step 2
Types Employer Payer Employer/Payer
Benefits and allowances
 Withhold CPP
 Withhold EI
 T4 code
 T4A code
 Include GST/HST
Automobile or motor vehicle benefits – Allowances or reimbursements provided to an employee for the use of their own vehicle Yes Yes 40 028   No
Automobile provided by the employer Yes   No 34 028 Yes
Benefits provided to an employee who has a severe or prolonged impairment (disability) Yes   No - Non-cash
Yes - Cash		 40 N/A Yes - Non-cash
  No - Cash

Board and lodging

 Yes   No - Non-cash *
Yes - Cash		 30 028 Yes - Non-cash (in some situations)
  No - Cash
Board and lodging, and transportation - Provided to an employee working at a remote location Yes   No - Non-cash *
Yes - Cash		 30 or 40 028 Yes - Non-cash (in some situations)
  No - Cash
Board and lodging, and transportation - Provided to an employee working at a special work site Yes   No - Non-cash *
Yes - Cash		 30 or 40 028 Yes - Non-cash (in some situations)
  No - Cash
Housing and utilities, and travel assistance - Provided to an employee working in a prescribed zone Yes   No - Non-cash *
Yes - Cash		 30, 32, 33 or 40 028 or 116 Yes - Non-cash (in some situations)
  No - Cash
Cell phone and internet services Yes   No - Non-cash
Yes - Cash		 40 028 Yes Non-cash
No  Cash
Child care expenses Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash

Contributions to savings and pension plans

Includes
  • First home savings accounts (FHSA)
  • Pooled registered pension plan (PRPP)
  • Retirement compensation arrangement (RCA)
  • Registered disability savings plan (RDSP)
  • Registered education savings plan (RESP)
  • Registered pension plan (RPP)
  • Registered retirement income funds (RRIF)
  • Registered retirement savings plan (RRSP)
  • Tax-free savings account (TFSA)
 Yes   No - Non-cash
Yes - Cash		 40 028 Yes Non-cash (in some situations)
No  Cash
Counselling services and tax preparation Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Educational assistance
Includes
Yes   No - Non-cash
Yes - Cash		 40 105 Yes - Non-cash (in some situations)
  No - Cash
Employee security (stock) options Yes   No - Non-cash
Yes - Cash outs		 38 or 90 N/A   No
Event tickets Yes   No 40 028 Yes
Gifts, awards, and long-service awards Yes    No - Non-cash
Yes - Cash		 40 028 or 154 Yes - Non-cash
   No - Cash
Housing and utilities Yes   No - Non-cash *
Yes - Cash		 30 or 40 028 Yes - Non-cash (in some situations)
  No - Cash
Housing and utilities - Provided to a member of the clergy, a regular minister or a member of a religious order Yes   No - Non-cash *
Yes - Cash		 30 or 40 028 Yes - Non-cash (in some situations)
  No - Cash
Loans and employee debt Yes    No - Non-cash (interest benefits)
Yes - Cash (forgiven loans and repayable awards)		 36 or 40 117    No
Loyalty or other points programs Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash

Meals provided by the employer

Includes
Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash
  No - Cash
Medical expenses, including payments from a private health services plan (PHSP) Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Merchandise discounts and commissions from personal purchases Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Motor vehicle provided by the employer Yes   No 34 028 Yes
Moving and relocation expenses, including housing loss Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Parking Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash
  No - Cash

Premiums and contributions to insurance plans

Includes
Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Professional membership dues Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Recreational facilities and club dues Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Social events and hospitality functions Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash
  No - Cash
Tool reimbursements, allowances and rental payments Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash
  No - Cash
Transportation and airline passes Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash

Travel expenses

Includes
Yes   No - Non-cash
Yes - Cash		 40 028 Yes - Non-cash (in some situations)
  No - Cash
Uniforms, protective clothing, safety and special clothing Yes   No - Non-cash
Yes - Cash		 40 N/A Yes - Non-cash
  No - Cash

Situation: Only remuneration provided is a taxable benefit

Do not deduct CPP contributions if all of the following apply:

  • It is a non-cash taxable benefit (with the exception of security options)
  • It is the only remuneration you provide to your employee (your employee did not receive any cash earnings)

Situation: Cash earnings paid in the pay period

You must withhold EI if cash earnings were also paid in the pay period.

Page details

Date modified: