Canada Revenue Agency Releases Updated Taxable Benefits Guide

The Canada Revenue Agency (CRA) has released an update to T4130 Employers’ Guide – Taxable Benefits and Allowances. This guide explains an employer’s responsibilities in determining taxable benefits, including how to value benefits and allowances and calculate the resulting GST/HST liability.

A key change from last year’s version relates to security options exercised for a non-Canadian-controlled private corporation (CCPC) or securities of a CCPC disposed of on or after June 25, 2024, where the security options deduction the employee can claim has been reduced from one-half to one-third. This change is the result of proposed legislation, which had not received Royal Assent before the release of the updated publication.

One of the most common taxable benefits provided to employees is an employer-provided automobile.  The CRA Automobile Benefits Online Calculator takes into account all of the rules for computing these benefits. Use of this calculator can take some of the uncertainty out of these otherwise complex calculations.