Income of a Taxpayer
Salary, wages, remunerations, for services and gratuities received by a taxpayer are all considered as income of a taxpayer. These types of incomes are taxable in the year received.
Benefits included in income of a taxpayer:
Board and Lodging.
Director’s fee.
Bonuses.
Tips.
Value of personal use of a company vehicle.
Payments made on behalf of an employee.
Certain group insurance payments.
Damages for wrongful dismissal from employment.
Amount received from an employer in consideration for release from a contract.
Cancelled debt from an employer.
The amounts of board and lodging paid by employer.
Rent free and low rent housing.
Travel benefits.
Gifts (including Christmas gifts).
Holiday trips.
Prizes and incentive awards.
Frequent flyer programs.
Traveling expenses of employee’s spouse or common law partner including same-sex partners after 2000.
Employee premiums under provincial hospitalizing and medical care insurance plans.
Tuition fees paid by employer.
Reimbursement for cost of tool.
Wage-loss replacement plans.
Interest free and low-interest loans.
Financial counseling and income tax return preparation payments made by employer.
Employee’s portion contribution to Canada pension plans paid by employer.
U.S Social security benefits.
Payments of U.S social security taxes made by employer.
Fee paid by an employer for financial counseling services provided to employee by an outside firm.
Items not included in income:
Employer’s contribution to registered pension plan.
Group sickness insurance.
Accident insurance plan.
Private health service plan.
Supplementary unemployment benefit plan.
Deferred profit sharing plan.
Group term life insurance policy.
Employee benefit plan.
Discounts on merchandise.
Discount commissions on sales.
Subsidized meals when employee pays reasonable amount.
Uniform and special clothing.
Certain subsidized school services in remote areas.
Transportation to a job provided by employer.
Recreational facilities.
Removal expenses.
Premiums under private health service plans.
Employer contribution under provincial hospitalizing and medical care plan.
Transportation passes.
Certain employer counseling services.
Professional membership fees if employer is the primary beneficiary.
The employer’s contributions to the Canada Pension plan.
Financial counseling services in respect of the re-employment or retirement of an employee.
Employer provided counseling services in respect of mental or physical health of the taxpayer on re-employment or retirement.
Disclaimer:
This information is for educational purposes only. It does not constitute any legal advice or opinion. Please do not use any of its contents without seeking a professional advice.
References:
Canadian Master Tax Guide by CCH
Mansoor Suhail (Mani)
Accountant
BSBA – EA – ICIA – RA
Tax for Canada and U.S.A
Web: www.theaccountingandtax.com and www.taxservicesguru.com
Blog: http://taxservicesguru.blogspot.ca
416 – 283 – 8774
The Accounting and Tax