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Taxable Benefits Require Finesse

Providing employee benefits and non-cash incentives can be a win-win for employers and employees as employees are often drawn to organizations that offer benefits beyond only a pay cheque. However, correctly managing and administering these benefits requires more finesse than many employers may consider. "A better understanding of non-taxable benefits such as gifts and awards results in more tax-savvy remuneration packages that can ultimately benefit employees and employers," says Steven Van Alstine, vice-president of education at the Canadian Payroll Association. "Be sure that you and your organization have the expertise in place to seamlessly navigate the complexities of payroll compliance." At the outset, employers should be aware that there is a difference between taxable benefits, allowances, and expense reimbursements which are often categorized as employee benefits. Each category requires understanding of federal, provincial, and territorial legislation and regulations and entails unique administration. The association's ‘Taxable Benefits & Allowances’ seminar reviews these aspects and explores key concepts used by the Canada Revenue Agency and Revenu Québec to evaluate taxability and assess more than 40 common benefits, including automobile allowances, loan and stock options, gift cards, and more. A schedule of sessions across Canada can be found at Taxable Benefits

Courtesy of Benefits and Pensions Monitor website News Alerts 

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