Submitting Taxable Benefits
UBC Administrators must identify and properly record employee benefits that are subject to CPP, EI, and GST/HST.
The Income Tax Act requires that certain employer-paid benefits/allowances that are paid or provided to employees be included in the employee’s employment income for tax purposes. This depends on the type of benefit or allowance (see Benefits Chart below).
The information provided to Payroll should include:
- the nature of the benefit
- the employees impacted
- the amount of the benefit
Once the benefit is confirmed, the employee’s T4 will be adjusted to include the appropriate charges.
Please note that taxable benefit status may depend on whether or not the benefits (such as cellular service and vehicles) are used in part for personal use. For more information on this and the other taxable benefits listed below, please refer to the CRA Employer’s Guide – Taxable Benefits and Allowances.
Employee benefits that should be reported to Payroll are as follows:
- Automobile and motor vehicle allowances
- Personal use portion of Automobile standby charge and operating expense benefits
- Board and lodging
- Personal use portion of Cellular phone service
- Child care expenses
- Counseling services in excess of the standard benefit package
- Non Payroll paid Disability-related employment benefits
- Discounts on merchandise and commissions on sales
- Educational allowances for children
- Gifts and awards over $500
- Non Payroll paid Group term life insurance policies: Employer-paid premiums
- Housing, rent-free or low-rent
- Interest-free and low-interest loans
- Internet service (at home) unless required for on-call work
- Meals – Overtime, Subsidized unless under $17, infrequent and overtime was more than 2 hours
- Moving expenses and relocation benefits for items not specifically named in the guide
- Municipal officer’s expense allowance (delete as not applicable for UBC)
- Parking , unless car is required for frequent off-campus meetings
- Non Payroll paid Premiums under provincial hospitalization, medical care insurance, and certain federal government plans
- Professional membership dues unless required for employment
- Recreational facilities
- Non Payroll paid Registered Retirement Savings Plan (RRSP) contributions
- Scholarships and bursaries which do not go through the Awards Office or Graduate Studies
- Security options from a UBC spin-off company
- Social events unless all department staff/faculty are invited
- Spouse or common-law partner’s traveling expenses
- Tool allowance
- Tool reimbursement
- Transit passes
- Transportation to and from the job
- Travel assistance in a prescribed zone
- Traveling allowances to a part-time employee and other employees
- Tuition fees for courses not required for employment
- Uniforms and special clothing unless protective or required by law
- Non Payroll paid Wage-loss replacement or income maintenance non-group plan premiums
Given for a special occasion such as a religious holiday, a birthday, a wedding, or the birth of a child.
Are for an employment-related accomplishment such as outstanding service, or employees’ suggestions. Performance-based rewards are not gifts/awards, and are taxable.
Whether a ticket is a taxable benefit to the employee depends on whether the ticket is provided for personal or business use. Each case is different.
Generally, the value of tickets is considered a taxable benefit when an employer gives an employee tickets for personal use unless it is being given under the terms of the gifts and awards policy.
There is no taxable benefit to an employee for the value of a ticket used for business purposes.
Sometimes an employee needs a ticket to attend a game or event to be able to perform his or her employment duties. In these situations, the tickets are given to the employee for a business use. Employment duties may include:
- promoting and marketing to suppliers or other business contacts;
- supervising and managing at an event; or
- performing other specific duties required during the event, including:
- providing on-call, on-site emergency medical services;
- conducting in-venue marketing promotions; or
- training on a product.