Benefits and allowances chart
This chart indicates whether the taxable allowances and benefits are subject to Canada Pension Plan (CPP) and employment insurance (EI) withholdings, and shows which codes you should use to report them on the employee's T4 slip.
The chart also indicates whether the GST/HST has to be included in the value of the taxable benefit for income tax purposes. Cash reimbursements and non-cash benefits are subject to the GST/HST, unless they are for exempt or zero-rated supplies. Cash allowances are not subject to the GST/HST.
|Taxable allowance or benefit||Deduct|
Code for T4
|Automobile and motor vehicle allowances - in cash||yes||yes||40||no|
|Automobile standby charge and operating expense benefits - non-cash||yes||no||34||yes|
|Board and lodging, if cash earnings also paid||yes||2||30||3|
|Cellular phone service - in cash||yes||yes||40||yes|
|Cellular phone service - non-cash||yes||no||40||yes|
|Child care expenses - in cash||yes||yes||40||4|
|Child care expenses - non-cash||yes||no||40||4|
|Counselling services - in cash||yes||yes||40||5|
|Counselling services - non-cash||yes||no||40||5|
|Disability-related employment benefits - in cash||yes||yes||40||6|
|Disability-related employment benefits - non-cash||yes||no||40||6|
|Discounts on merchandise and commissions on sales - non-cash||yes||no||40||yes|
|Educational allowances for children - in cash||yes||yes||40||no|
|Employment insurance premium rebate||yes||yes||40||no|
|Gifts and awards - in cash||yes||yes||40||no|
|Gifts and awards - non-cash and near-cash||yes||no||40||yes|
|Group term life insurance policies - employer-paid premiums - non-cash||yes||no||40||no|
|Housing allowance, clergy - in cash||7||yes||30||no|
|Housing allowance - in cash||yes||yes||30||8|
|Housing benefit, clergy, rent-free or low-rent - non-cash||7||9||30||8|
|Housing benefit, rent-free or low-rent - non-cash||yes||9||30||8|
|Housing loss - in cash||yes||yes||40||no|
|Income maintenance plans and other income plans - non-cash||yes||no||40||no|
|Interest-free and low-interest loans10||yes||no||36||no|
|Internet service (at home) - in cash||yes||yes||40||yes|
|Internet service (at home) - non-cash||yes||no||40||yes|
|Loans - Home purchase||yes||no||36||no|
|Loans - Home relocation||yes||no||10||no|
|Loans - Forgiven - in cash||yes||yes||40||no|
|Meals - Overtime allowances - in cash||yes||yes||40||no|
|Meals - Overtime - in cash||yes||yes||40||yes|
|Meals - Overtime - non-cash||yes||no||40||yes|
|Meals - Subsidized - non-cash||yes||no||40||yes|
|Medical expenses - in cash||yes||yes||40||11|
|Medical expenses - non-cash||yes||no||40||11|
|Moving expenses and relocation benefits - in cash||yes||yes||40||yes|
|Moving expenses and relocation benefits - non-cash||yes||no||40||yes|
|Moving expenses - non-accountable allowance over $650 - in cash||yes||yes||40||no|
|Municipal officer's expense allowance||yes||no||12||no|
|Parking - in cash||yes||yes||40||yes|
|Parking - non-cash||yes||no||40||yes|
|Power saws and tree trimmers; rental paid by employer for employee-owned tools - in cash||yes||yes||40||yes|
|Premiums under provincial hospitalization, medical care insurance, and certain federal government plans - in cash||yes||yes||40||no|
|Premiums under provincial hospitalization, medical care insurance, and certain federal government plans - non-cash||yes||no||40||no|
|Professional membership dues - in cash||yes||yes||40||13|
|Professional membership dues - non-cash||yes||no||40||13|
|Recreational facilities (in house) - non-cash||yes||no||40||yes|
|Recreational facilities or club membership dues - in cash||yes||yes||40||yes|
|Registered retirement savings plan (RRSP) contributions - in cash||yes||14||40||no|
|Registered retirement savings plan (RRSP) administration fees - non-cash||yes||no||40||13|
|Scholarships and bursaries - in cash||yes||yes||40||no|
|Security options (including cash outs)||yes||no||15||no|
|Social events - in cash||yes||yes||40||no|
|Social events - non-cash||yes||no||40||yes|
|Spouse or common-law partner's travelling expenses - in cash||yes||yes||40||no|
|Spouse or common-law partner's travelling expenses - non-cash||yes||no||40||yes|
|Tax-Free Savings Account - contributions - in cash||yes||14||40||no|
|Tax-Free Savings Account - administration fees - non-cash||yes||no||40||13|
|Tool reimbursement or allowance - in cash||yes||yes||40||yes|
|Transit passes - in cash||yes||yes||40||yes|
|Transit passes - non-cash||yes||no||40||yes|
|Transportation to and from the job - in cash||yes||yes||40||yes|
|Transportation to and from the job - non-cash||yes||no||40||yes|
|Travel assistance in a prescribed zone - in cash||yes||yes||32||yes|
|Travel assistance in a prescribed zone - non-cash||yes||no||32||yes|
|Travel allowances other employees, unreasonable||yes||yes||40||no|
|Tuition fees - in cash||yes||yes||40||13|
|Tuition fees - non-cash||yes||no||40||13|
|Uniforms and special clothing - in cash||yes||yes||40||yes|
|Uniforms and special clothing - non-cash||yes||no||40||yes|
|Utilities allowance, clergy - in cash||7||yes||40||no|
|Utilities allowance - in cash||yes||yes||40||no|
|Utilities benefit, clergy - non-cash||7||no||40||8|
|Utilities benefit, rent-free or low-rent - non-cash||yes||no||40||8|
- Except for security options, if a non-cash taxable benefit is the only form of remuneration you provide to your employee, there is no remuneration from which to withhold deductions. For more information, see Calculating deductions.
- If no cash earnings are paid in a pay period, do not deduct EI premiums.
- Meals and short term accommodations are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
- Child care expenses are generally exempt of GST/HST. If taxable, include the GST/HST in the value of the benefit.
- Certain counselling services are subject to the GST/HST. If the services you pay are subject to the GST/HST, include the GST/HST in the value of the benefit.
- Disability-related employment benefits are generally taxable for GST/HST. If taxable, include the GST/HST in the value of the benefit.
- If you reduce the income subject to income tax deductions by the clergy residence deduction (including utilities), you may also reduce the earnings subject to CPP contributions by the same amount.
- Long-term accommodations are generally exempt of GST/HST and utilities are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
- If it is a non cash benefit, it is insurable if it is received by the employee in addition to cash earnings in a pay period. If no cash earnings are paid in the pay period, it is not insurable.
- Enter the taxable interest benefit under code 036 and enter the home relocation loan deduction under code 037.
- Some medical expenses are subject to the GST/HST. For more information, see Medical expenses.
- Enter the amount over of one third of the officer's salary and allowances under code 040. Enter the exempt amount under code 070.
- Certain fees and certain contributions are subject to the GST/HST. If the fees or the contributions you pay are subject to the GST/HST, include it in the value of the benefit.
- Some RRSP and TFSA contributions may not be subject to EI premiums. For more information, see Tax-Free Savings Account (TFSA) and Registered retirement savings plans (RRSPs).
- Enter the taxable security option benefit under code 038. If eligible, enter the amount of the security options deduction under code 86 and either code 039 or 041, as applicable.
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