Canada Revenue Agency Updates Employer’s Guide to Taxable Benefits and Allowances

The Canada Revenue Agency (“CRA”) has released an updated version of publication T4130, “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 and allowances, including the GST/HST treatment of such benefits.

New for 2018, the CRA has set a $50 threshold for reporting Group Term Life Insurance premiums paid on behalf of retirees if it’s the only income reported on a T4A.  In addition, the home relocation deduction is eliminated, effective January 1, 2018.  Furthermore, the guide indicates that beginning in 2019, any amount of the non-accountable allowanced paid to elected officers should be included in their income.

Other minor changes include increasing the threshold for reporting employee benefits derived from employer-sponsored social events to $150, and the elimination of the public transit tax credit (which was effective July 1, 2017).

As was announced in the 2017 update to the T4130, the 2018 version, and all versions going forward, will only be released in electronic format.