Determine if a benefit is taxable

Source URL

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/benefits-allowances-chart.html

Disclaimer

We do not guarantee the accuracy of this copy of the CRA website.

Scraped Page Content


Calculate payroll deductions and contributions


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:
2025-06-18