Employment Income, Taxable Benefits

Taxable Benefits Obtained From Employment Income

The value of most benefits obtained from employment is included as personal income. As a rule, the following must be included as part of your income;

  • All tips, whether included on your T4 or not.
  • Awards of near cash merchandise such as gift certificates from your employer.
  • Some subsidized long-term accommodation provided by your employer.
  • New in 2013, if you received payments to compensate for loss of income from a disability, sickness or accident insurance plan and the premiums were paid by your employer, there may be taxable benefits. Annual premiums paid on your behalf by an employer to a group sickness or accident insurance plan are also taxable starting in 2013.
  • A cell phone/tablet/notebook and internet service provided by your employer for work purposes is not considered income, but if part of the use is personal, that part is taxable.
  • If your spouse accompanies you on a business trip and your employer reimburses his/her travel expenses they are taxable.
  • Fair market value of any subsidy in tuition provided by an educational institution to an employee or his family must be included in the employees income.
  • Certain accumulated personal credit arising from loyalty incentives such as Frequent Flyer Miles accrued from business travel are considered taxable to an employee when using a company credit card to pay.

You can find more information about these and other taxable benefits such as flex benefits from an employee benefit program received in cash, by visiting Employers’ Guide Taxable Benefits and Allowances

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