Benefits and allowances chart

Benefits and Allowances Chart

This chart indicates whether you need to deduct Canada Pension Plan (CPP) and employment insurance (EI) from the taxable allowances and benefits, and shows which codes you should use to report them on the employee's T4 slip.

The chart also indicates whether the GST/HST has to be included in the value of the taxable benefit for income tax purposes. Cash reimbursements and non-cash benefits are subject to GST/HST, unless they are for exempt or zero-rated supplies. Cash allowances are not subject to GST/HST.

Taxable Benefit and Allowance	Deduct CPP¹	Deduct EI	Code in T4	Include GST/HST
Automobile and motor vehicle allowances - in cash	yes	yes	40	no
Automobile standby charge and operating expense benefits - non-cash	yes	no	34	yes
Board and lodging, if cash earnings also paid	yes	²	30	³
Cellular phone service and Internet services - in cash	yes	yes	40	yes
Cellular phone service and Internet services - non-cash	yes	no	40	yes
Child care expenses - in cash	yes	yes	40	⁴
Child care expenses - non-cash	yes	no	40	⁴
Counselling services - in cash	yes	yes	40	⁵
Counselling services - non-cash	yes	no	40	⁵
Disability-related employment benefits - in cash	yes	yes	40	⁶
Disability-related employment benefits - non-cash	yes	no	40	⁶
Discounts on merchandise and commissions on sales - non-cash	yes	no	40	yes
Educational allowances for children - in cash	yes	yes	40	no
Employment insurance premium rebate	yes	yes	40	no
Gifts and awards - in cash	yes	yes	40	no
Gifts and awards - non-cash and near-cash	yes	no	40	yes
Group term life insurance policies - employer-paid premiums - non-cash	yes	no	40	no
Housing allowance, clergy - in cash	⁷	yes	30	no
Housing allowance - in cash	yes	yes	30	⁸
Housing benefit, clergy, rent-free or low-rent - non-cash	⁷	⁹	30	⁸
Housing benefit, rent-free or low-rent - non-cash	yes	⁹	30	⁸
Housing loss - in cash	yes	yes	40	no
Interest-free and low-interest loans ¹⁰	yes	no	36	no
Loans - Home purchase	yes	no	36	no
Loans - Home relocation	yes	no	¹⁰	no
Loans - Forgiven - in cash	yes	yes	40	no
Meals - Overtime allowances - in cash	yes	yes	40	no
Meals - Overtime - in cash	yes	yes	40	yes
Meals - Overtime - non-cash	yes	no	40	yes
Meals - Subsidized - non-cash	yes	no	40	yes
Medical expenses - in cash	yes	yes	40	¹¹
Medical expenses - non-cash	yes	no	40	¹¹
Moving expenses and relocation benefits - in cash	yes	yes	40	yes
Moving expenses and relocation benefits - non-cash	yes	no	40	yes
Moving expenses - non-accountable allowance over $650 - in cash	yes	yes	40	no
Municipal officer's expense allowance	yes	no	¹²	no
Parking - in cash	yes	yes	40	no
Parking - non-cash	yes	no	40	yes
Pooled registered pension plan contributions (paid to a plan not registered with the Minister of National Revenue)	yes	yes	40	no
Power saws and tree trimmers; rental paid by employer for employee-owned tools - in cash	yes	yes	40	yes
Premiums for income maintenance plans and other insurance plans ? non cash	yes	no	40	no
Premiums under provincial hospitalization, medical care insurance, and certain federal government plans - in cash	yes	yes	40	no
Premiums under provincial hospitalization, medical care insurance, and certain federal government plans - non-cash	yes	no	40	no
Professional membership dues - in cash	yes	yes	40	¹³
Professional membership dues - non-cash	yes	no	40	¹³
Recreational facilities (in house) - non-cash	yes	no	40	yes
Recreational facilities or club membership dues - in cash	yes	yes	40	yes
Registered retirement savings plan (RRSP) contributions - in cash	yes	¹⁴	40	no
Registered retirement savings plan (RRSP) administration fees - non-cash	yes	no	40	¹³
Scholarships and bursaries - in cash	yes	yes	40	no
Security options (cash outs)	yes	yes	¹⁵	no
Security options	yes	no	¹⁵	no
Social events - in cash	yes	yes	40	no
Social events - non-cash	yes	no	40	yes
Spouse or common-law partner's travelling expenses - in cash	yes	yes	40	no
Spouse or common-law partner's travelling expenses - non-cash	yes	no	40	yes
Tax-Free Savings Account - contributions - in cash	yes	¹⁴	40	no
Tax-Free Savings Account - administration fees - non-cash	yes	no	40	¹³
Tickets	yes	no	40	yes
Tool allowance - in cash	yes	yes	40	no
Tool reimbursement - in cash	yes	yes	40	yes
Transportation passes - in cash	yes	yes	40	yes
Transportation passes - non-cash	yes	no	40	yes
Transportation to and from the job - in cash	yes	yes	40	yes
Transportation to and from the job - non-cash	yes	no	40	yes
Travel assistance in a prescribed zone - in cash	yes	yes	32	yes
Travel assistance in a prescribed zone - non-cash	yes	no	32	yes
Travel allowances other employees, unreasonable	yes	yes	40	no
Tuition fees - in cash	yes	yes	40	¹³
Tuition fees - non-cash	yes	no	40	¹³
Uniforms and protective clothing - in cash	yes	yes	40	yes
Uniforms and protective clothing - non-cash	yes	no	40	yes
Utilities allowance, clergy - in cash	⁷	yes	40	no
Utilities allowance - in cash	yes	yes	40	no
Utilities benefit, clergy - non-cash	⁷	no	40	⁸
Utilities benefit, rent-free or low-rent - non-cash	yes	no	40	⁸

Footnotes:

Except for security options, if a non-cash taxable benefit is the only form of remuneration you provide to your employee, there is no remuneration from which to withhold deductions. For more information, see Calculating deductions.
If no cash earnings are paid in a pay period, do not deduct EI premiums.
Meals and short term accommodations are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
Child care expenses are generally exempt of GST/HST. If taxable, include the GST/HST in the value of the benefit.
Certain counselling services are subject to the GST/HST. If the services you pay are subject to the GST/HST, include the GST/HST in the value of the benefit.
Disability-related employment benefits are generally taxable for GST/HST. If taxable, include the GST/HST in the value of the benefit.
If you reduce the income used to calculate income tax deductions by the amount of the clergy residence deduction (including utilities), you may also reduce the pensionable earnings used to calculate CPP contributions by the same amount.
Long-term accommodations are generally exempt of GST/HST and utilities are generally subject to the GST/HST. If taxable, include the GST/HST in the value of the benefit.
If it is a non cash benefit, it is insurable if it is received by the employee in addition to cash earnings in a pay period. If no cash earnings are paid in the pay period, it is not insurable.
Enter the taxable interest benefit under code 36 and enter the home relocation loan deduction under code 37.
Some medical expenses are subject to the GST/HST. For more information, see Medical expenses.
Enter the amount over of one third of the officer's salary and allowances under code 40. Enter the exempt amount under code 70.
Certain fees and certain contributions are subject to the GST/HST. If the fees or the contributions you pay are subject to the GST/HST, include it in the value of the benefit.
You may not have to deduct EI premiums on some RRSP and TFSA contributions. For more information, see Tax-Free Savings Account (TFSA) and Registered retirement savings plans (RRSPs).
Enter the taxable security option benefit under code 38. If eligible, enter the amount of the security options deduction under code 86 and either code 39 or 41, as applicable.