News and Insights

CRA Employer’s Guide T4130, “Taxable Benefits and Allowances”

Tax Development Dec 08, 2011

The Canada Revenue Agency has released the 2011 revision of the “Employer’s Guide - Taxable Benefits and Allowances”.  This guide explains an employer’s responsibilities in determining taxable benefits and how to calculate the value of benefits or allowances, including the GST/HST treatment of employee benefits.

There were no significant changes made to the general contents of this publication.  However, the guide includes updated taxable benefit factors, and automobile benefit factors and rates for the provinces of British Columbia, Nova Scotia and Ontario, reflecting the fact that the current Harmonized Sales Tax rates in these provinces have now been in effect for a complete calendar year.

Finally, beginning January 2011, employers can electronically file up to 50 T4 or T4A slips online with the Canada Revenue Agency in a single submission. 

Calculating Automobile Benefits for 2011

The Canada Revenue Agency recently updated form RC18 – “Calculating Automobile Benefit for 2011”.  This worksheet is for employers who provide their employees with automobile benefits.  It can be useful in determining the amount of the taxable benefit that must be reported on an employee’s T4 or T4A slip.  In addition, it may also be used to calculate the automobile benefit amount to prorate to an employee’s pay periods in 2012.

For more information on the GST/HST treatment of taxable benefits and allowances, please see the link below to our Tax Development regarding two new GST/HST Memoranda released on this subject.

GST/HST Memoranda re: Taxable Benefits

CRA T4130