Quick Answer: Is Dental A Taxable Benefit In Canada?

What is considered a taxable benefit in Canada?

The Canada Revenue Agency considers a benefit taxable if an employer pays or provides something to an employee that is personal in nature such as a reimbursement of personal expenses, the free use of property, goods or services owned by the company or an allowance..

Is LOA taxable in Canada?

If CRA deems the allowance not reasonable, the allowance is still deductible to the company, however the excessive portion of the allowance will be taxable in the hands of the employee. Please note that an employer is under no obligation to pay out a living out allowance.

How much do employers pay for benefits in Canada?

Spending on employee benefits is a a significant expense for Canadian companies—the average cost of providing benefits for a full-time employee is $8,330. These are the findings of a Conference Board of Canada survey.

Are reimbursed expenses considered income Canada?

The reimbursement is considered to be a taxable benefit for income tax purposes. This reimbursement is in the nature of a salary or remuneration.

Is GST charged on living out allowance?

We invoice our services and live out allowances. We have been charging them GST and will send it to the CRA. … Utilities are generally subject to GST/HST, so you would include that in the value of the allowance. If you provide a transportation allowance, the GST is also included.

Is group insurance a taxable benefit in Canada?

Employer-paid premiums for group life insurance, dependant life insurance, accident insurance and critical illness insurance are taxable benefits. What’s more, your taxable income includes the amounts paid on your behalf. In Quebec, premiums for health and dental insurance are also considered a taxable benefit.

Are extended health benefits taxable in Canada?

Many employees pay all or a portion of the premiums for their extended health benefits, with the premiums being deducted from their pay. When the employer pays the premiums for provincial health care plan, this is considered a taxable benefit to the employee.

What is a non cash taxable benefit in Canada?

A non-cash (or “in kind”) benefit is the actual good, service, or property that you give to your employee. This includes a payment you make to a third party for the particular good or service if you are responsible for the expense.

Are employee benefits taxable in Canada?

By and large, all employer benefits are taxable. One notable exception are health and dental benefits. In Canada, health and dental benefits can be paid out tax-free to employees. … The employer cannot simply pay an employee, call it a health or dental benefit, and expect it to be a tax-free.

Are disability benefits taxable in Canada?

Generally, if you pay the entire amount of the disability premium yourself, your disability benefits will be tax-free. … If your employer pays all or part of the disability premium, your disability benefits will be subject to income taxes.

What employee benefits are not taxable?

Other fringe benefits that are not considered taxable to employees include health insurance (up to a maximum dollar amount), dependent care, group term-life insurance, qualified benefits plans such as profit sharing or stock bonus plans, commuting or transportation benefits, employee discounts, and working condition …

Is mileage reimbursement taxable income in Canada?

An allowance is taxable unless it is based on a reasonable per-kilometre rate. … Employees receiving a taxable allowance may be able to claim allowable expenses on their income tax and benefit return. For more information, see Employees’ allowable employment expenses.

Is a cell phone allowance a taxable benefit in Canada?

If you pay for, or reimburse the cost of an employee’s cell phone service plan, or Internet service at home to help carry out their employment duties, the portion used for employment purposes is not a taxable benefit.

Is coffee a taxable benefit?

Generally, non-cash gifts and awards under $500 annually are non-taxable benefits. Trivial gifts such as a corporate logo clothing, mugs, and coffee, will not count towards the $500 limit. As a reward for long-serving employees, you may reward your employees every 5 years, non-cash gifts up to a maximum of $500.

How do I claim my cell phone on my taxes Canada?

You can also deduct the part of airtime expenses for a cell phone that reasonably relates to earning your commission income. However, you cannot deduct amounts you paid to connect or license the cell phone. If you buy a computer, cell phone, fax machine, or other such equipment, you cannot deduct the cost.