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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 benefit or allowance	Deduct CPP¹²	Deduct EI	Code for T4 Slip	Include GST/HST
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 in the pay period	yes	yes	30	¹
Board and lodging, if no cash earnings paid in the pay period	yes	no	30	¹
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	yes
Child care expenses - non-cash	yes	no	40	yes
Counselling services - in cash	yes	yes	40	²
Counselling services - non-cash	yes	no	40	²
Disability-related employment benefits - in cash	yes	yes	40	yes
Disability-related employment benefits - non-cash	yes	no	40	yes
Discounts on merchandise and commissions on sales - non-cash	yes	no	40	yes
Educational allowances for children - in cash	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	³	yes	30	no
Housing allowance - in cash	yes	yes	30	no⁴
Housing benefit, clergy, rent-free or low-rent - non-cash	³	⁴	30	³
Housing benefit, rent-free or low-rent - non-cash	yes	⁵	30	³
Housing loss - in cash	yes	yes	40	no
Interest-free and low-interest loans⁶	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	⁶	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	⁷
Medical expenses - non-cash	yes	no	40	⁷
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	70⁸	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	^⁹
Professional membership dues - non-cash	yes	no	40	^⁹
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	yes	40	no
Registered retirement savings plan (RRSP) administration fees - non-cash	yes	no	40	⁹
Scholarships and bursaries - in cash	yes	yes	40	no
Security options (including cash outs)	yes	no	38¹⁰	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	yes	40	no
Tax-Free Savings Account - administration fees - non-cash	yes	no	40	⁹
Tool allowance - in cash	yes	yes	40	no
Tool reimbursement - 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	no	32	yes
Travel assistance in a prescribed zone - non-cash	yes	no	32	yes¹¹
Travel allowances to other employees, unreasonable	yes	yes	40	no
Tuition fees - in cash	yes	yes	40	⁹
Tuition fees - non-cash	yes	no	40	⁹
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	³	yes	40	no
Utilities allowance - in cash	yes	yes	40	no
Utilities benefit, clergy - non-cash	³	no	40	³
Utilities benefit, rent-free or low-rent - non-cash	yes	no	40	³
Wage-loss replacement or income maintenance non-group plan premiums - non-cash	yes	no	40	no

The rent part of the lodging benefit is subject to the GST/HST if the dwelling is occupied for less than one month; the utility part is subject to the GST/HST unless it is supplied by the municipality.
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.
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.
The rent part of the housing benefit is subject to the GST/HST if the dwelling is occupied for less than one month; the utility part is subject to the GST/HST unless it is supplied by the municipality.
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 36 and enter the home relocation loan deduction under code 37.
Some medical expenses are subject to the GST/HST.
Enter the amount over of one third of the officer's salary and allowances under code 40. Enter the exempt amount under code 70.
Certain fees are subject to the GST/HST. If the fees you pay are subject to the GST/HST, include it in the value of the benefit.
Enter the taxable security option benefit under code 38. If eligible, enter the amount of the security options deduction under code 86 and either code 39 or 41, as applicable.
Enter the amount of medical travel assistance under code 33.
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 Withholding on Cash and Non-cash benefits.