Tax Free Employment Benefits

The Income Tax Act requires that the value of all benefits be included in employment income and taxed accordingly. However, there are some provisions of the Income Tax Act and some administrative practices that may allow for tax-free payments.

Non-Cash Awards – If your employer provides you with on-cash gifts for say, birthdays, Christmas, or for a wedding, then the value of those benefits are to be included in your income. In the past, the CRA has adopted an administrative practice that allowed for up to 2 non-cash gifts per year provided the total of these gifts did not exceed $500.

Pay less tax!The CRA has changed its policy for 2010. The new policy does not limit the number of non-cash gifts, but rather establishes a general exclusion of up to $500 per year.

Discounts & Meal Subsidies – If your employer offers a discount on merchandise or services, these are considered tax-free benefits. Similarly, if your employer offers subsidized meals, the value of the subsidy is not considered taxable.

Death Benefits – If your employer makes a payment to your spouse or children in recognition of your death, then the value of these payments are tax exempt up to $10,000.

Get The Most From Your Benefits

When you use a professional accountant to prepare your taxes, you get access to a wealth of knowledge. We can help you take advantage of all of the benefits available to help you pay less tax.

Call us at (289) 288-1206 or email us to arrange an appointment to have us review your tax situation and look for opportunities to reduce your family tax bill.

Dean Paley

A graduate of Simon Fraser University, Dean started and operated an independent painting company while perusing a degree at SFU. After graduating from Simon Fraser, Dean entered the Certified General Accountants Program of Professional studies where he obtained the professional CGA designation. After a number of successful years as the head of finance for the Canadian operations in a global financial services firm, Dean moved into a marketing role and established and launched a tax, estate and financial planning support department and service to advisors and clients. During this time Dean successfully obtained the Certified Financial Planner (CFP) designation. Dean has been a member of the Canadian Forces Reserve spanning three decades serving in the Royal Westminster Regiment (B.C.), the Military Police and later as a commissioned officer in the Cadet Instructors Cadre in Hamilton Ontario. Dean Paley CGA CFP has been interviewed and quoted in major media such as the National Post, Financial Post, Toronto Star, Canadian Business, Money Sense and Investment Executive. Dean is married to his lovely wife Deborah and has four lovely children.