Financial Services

Financial Services

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TAXABLE BENEFITS FOR EMPLOYEES

Overview

A taxable benefit is a payment from an employer to an employee that primarily benefits the employee. The benefit can be in the form of cash or near cash or other types of payments. 

Taxable benefits paid to employees are subject to statutory deductions including Income tax (CIT), Canada Pension Plan (CPP) and Employment Insurance (EI).  On behalf of Queen’s University, Payroll Services is responsible for the following:

1) Calculating and deducting applicable taxes on taxable benefits

2) Remitting both employee and employer shares of taxes to the Canada Revenue Agency (CRA), as well as, remitting employer premiums for Workplace Safety and Insurance Board (WSIB) and Employer Health Tax (EHT)

3) Reporting the taxable benefits on the employee’s T4 tax slip

Process

When an employee receives a taxable benefit, the employee’s department is responsible to report this benefit to Payroll Services. To ensure timely processing of taxable benefits, departments should refer to the payroll dates & cut off schedules found on the Financial Services website under Resources.

Payroll Services will upload and process these benefits with the regular pay process.  Statutory deductions including CIT, CPP and EI will be calculated and deducted from the employee’s pay.  Employer shares of CPP and EI, EHT and WSIB premiums, will be charged to the employee’s department who provided the taxable benefit.

Taxable benefits are reported on an employee’s T4 tax slip in Box 14, Employment Income and a secondary box depending on the taxable benefit received.

Additional Information

Contact

For additional information please contact Michelle McFadzen or Christina Blanchard