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 benefits and allowances source deductions
Taxable allowance or benefit Deduct
CPP 1
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 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 loans 10 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
  1. 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.
  2. If no cash earnings are paid in a pay period, do not deduct EI premiums.
  3. Meals and short term accommodations are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
  4. Child care expenses are generally exempt of GST/HST. If taxable, include the GST/HST in the value of the benefit.
  5. 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.
  6. Disability-related employment benefits are generally taxable for GST/HST. If taxable, include the GST/HST in the value of the benefit.
  7. 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.
  8. 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.
  9. 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.
  10. Enter the taxable interest benefit under code 36 and enter the home relocation loan deduction under code 37.
  11. Some medical expenses are subject to the GST/HST. For more information, see Medical expenses.
  12. Enter the amount over of one third of the officer's salary and allowances under code 40. Enter the exempt amount under code 70.
  13. 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.
  14. 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).
  15. 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.
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