How to claim home office expenses
The Canada Revenue Agency is currently updating its webpages and Form T2200 for the 2023 tax year. The updated form, which will be made available at the end of January 2024, along with other T1 related forms, will be easier to complete for employees who are only claiming a deduction for home office expenses. Eligible […]
Reporting requirements for the Canadian Dental Care Plan
he Canadian Dental Care Plan (CDCP) will provide dental coverage for uninsured Canadians with an adjusted family net income of less than $90,000. There are new reporting requirements that begin with the 2023 tax year for issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, […]
First Home Savings Account (FHSA)
A first home savings account (FHSA) is a registered plan allowing a prospective first-time home buyer to save for your first home tax-free (up to certain limits). You can open an FHSA with your bank starting April 1, 2023. Contributions that you make to your first home savings accounts (FHSAs) are generally deductible on your […]
Canada Revenue Agency (CRA) Employees Strike
On April 19, 2023, the Union of Taxation Employees (PSAC-UTE) members have gone on strike. As a result of PSAC-UTE’s decision to begin labour action, Canadians should expect that some CRA services will be delayed or unavailable. While there are no plans to extend tax filing deadlines, the CRA will continue to accept all tax returns. Those that are filed […]
Taxability of Board and Lodging benefits and allowances given to Employees
Board and lodging You may give your employee board and lodging which means that you provide them with accommodations and, in some cases, food. If you provide only meals to an employee, see Meals. If you provide free lodging, or free board and lodging, to an employee, the employee receives a taxable benefit. As a result, you have […]
Taxabilty of Insurance Premiums
The answer to this question is it depends. These types of insurance follow similar taxing rules: Any premiums the employer pays for employees’ insurance types noted above less the portion the employee pays (either directly or through reimbursements) are taxable benefits. Here is the link if you wanted additional information: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/group-term-life-insurance-policies-employer-paid-premiums.html. For short/long-term disability premiums, […]
Taxability of Gifts, Awards, and Long-service Awards given to Employees
A gift or an award that you give an employee is a taxable benefit from employment, whether it is cash, near-cash, or non-cash. However, we have an administrative policy that exempts non-cash gifts and awards in some cases. Cash and near-cash gifts or awards are always a taxable benefit for the employee. A near-cash item […]
Taxability of Cell Phone and Internet Services Given to Employees
If you provide your employee with a cell phone (or another handheld communication device) that you own, to help carry out their employment duties, the fair market value (FMV) of the cell phone or device is not a taxable benefit. However, if you reimburse your employee for the cost of their own cell phone (or […]
Confirm a representative using My Account or My Business Account
There’s a new way to confirm authorized representatives using My Account or My Business Account. Whether you’re an individual or a business, this easy, two-step digital process will help you protect your tax information and make authorizing new representatives more efficient and secure. Who is a representative? Representatives are individuals you authorize to help you or your business manage […]
What to do if you can’t pay your taxes
If you ignore your tax debt, it will grow with interest charges and penalties. Penalties only apply if you file late or pay by installments and your installment payments are late or less than the required amount. Debts associated with COVID-19 Individual Emergency Benefits overpayments will not have penalties or interest assessed against the amount […]