AFM362 Lecture 4: chapter 3.3
28 Jun 2018
School
Department
Course
Professor
The board and lodging is necessary for not less than 36 hours and if an allowance is paid by an employer not
exceed a reasonable amount
○
e.g. health plan premiums are not taxable
○
Enables employees to select from a menu of available benefits some of which are taxable and some are not.•
3,140.20 flexible benefit programs
Employee membership:
membership in a social club paid by an employer will not be considered a taxable benefit
if the employer is the primary beneficiary of the membership
•
If an employer controls the points, the employer will continue to be required to report the fair market value
of any benefits received by the employee on the employee's T4 slip when the points are redeemed
○
Loyalty programs (e.g. frequent flyer points)
on a personal credit when travelling on employer reimbursed
business trips are not included
•
Financial counselling and tax return preparation:
are considered taxable whether provided directly or indirectly
by an employer except for re-employment or retirement financial planning
•
Business trips where the employee's spouse travels with the employee:
there's no employment benefit to the
employee if the spouse was engaged primarily in the business activities on behalf of the employer as opposed to
engaged in personal activities
•
Less than $500 annually
○
The anniversary award cannot be for less than five years of service or
For five years since the last long service award to the employee
It is a separate non
-
cash long service/anniversary award with a total value of $500 or less. In order to qualify
○
Any value over $500 will be taxable
○
A shortfall in value under one policy cannot be used to offset an excess value of the other. It is separate
between gifts and long service/anniversary awards
○
Non-cash gifts and awards: provided to arm's length employees are not taxable if•
Immaterial or nominal amounts: items such as coffee/tea will not be taxable benefit•
Computer supplied by employer:
home computers supplied by employer are not taxable benefit if the work done
is for the employer
•
The value of the meal or meal allowance is reasonable (up to $17)○
The employee works two or more hours of overtime ○
The overtime is infrequent less than 3 times a week○
Overtime meals and allowances:
CRA will consider to be non
-
taxable if
•
3,140.30 the CRA administrative practice
One half of any amount in excess of $15,000 must be included○
An amount received by an individual from an employer to compensate for a loss on the sale of a home may result
in taxable benefit
•
A housing loss is the cost of the residence minus the proceeds of disposition
○
Is defined as the taxpayer's housing loss that is in respect of an eligible relocation of the taxpayer or non-
arm's length person
○
Is defined as a relocation where there is a 40km minimum on the difference in the distance between old
residence and the new work location, and the difference between new residence and new work location
○
To be qualified, a loss must be eligible which is defined as•
3,140.40 housing loss and housing cost benefits
Included•
3,140.50 director's and other fees
Is not employed by the public authority for a same or similar business
○
Did not receive a salary for the emergency work in addition to the salary○
The first $1000 of the allowance received by volunteer is tax-free if the individual•
3,140.60 volunteer services exemption
Expense incurred by employees who earn commission income•
Travelling expenses for ordinary employees
•
Motor vehicle expenses for ordinary employees•
Professional membership dues and annual union dues required for employment duties
•
Only apply to individuals who are entitled to deductions for sales expenses and or rent/supplies related to a
workspace in a home.
○
Must be used 50% for employment at home
○
Or must be used exclusively to meet clients, earning employment income
○
Supplies include expenses paid for maintenance of home such as cost of fuel, electricity, cleaning, repairs
○
Interest on funds borrowed in purchase of home is not deductible
○
Office rent or workspace in home•
Salary paid to an assistant including CPP and EI payable of the assistant•
Legal expenses paid to collect salary wages owed
•
Defined benefit guarantee a predetermined amount
○
A limit of 18% of employee earnings and a prescribed dollar limit for all contributions
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>
Money purchase provide whatever pension income that the contributed funds in the plan can purchase. No
predetermined amount. Benefits will depend upon the actual contributions.
○
Contributions to an employers' RPP•
The deduction is the total cost to the individual of one or more eligible tools over $1,161 to a maximum
excess of $500
○
Trade person's tool expense•
RRSP are deducted under subdivision e, not subdivision a
•
United way, a charitable donations, is not deductible under Division B. it is eligible for a non-refundable tax credit
under Division E
•
3,200 deductions from employment income
AFM 362 Page 3
Document Summary
The board and lodging is necessary for not less than 36 hours and if an allowance is paid by an employer not exceed a reasonable amount. Enables employees to select from a menu of available benefits some of which are taxable and some are not. 3,140. 20 flexible benefit programs e. g. health plan premiums are not taxable. Employee membership: membership in a social club paid by an employer will not be considered a taxable benefit if the employer is the primary beneficiary of the membership. Loyalty programs (e. g. frequent flyer points) on a personal credit when travelling on employer reimbursed business trips are not included. If an employer controls the points, the employer will continue to be required to report the fair market value of any benefits received by the employee on the employee"s t4 slip when the points are redeemed.
