Do you give your employee a benefit, an allowance, or an expense reimbursement?
Your employee has received a benefit if you pay for or give something that is personal in nature:
- directly to your employee
- to a person who does not deal at arm’s length with the employee (such as the employee’s spouse, child, or sibling)
A benefit is a good or service you give, or arrange for a third party to give, to your employee such as free use of property that you own. A benefit includes an allowance or a reimbursement of an employee’s personal expense.
Original Article Source Credits: Canada.ca , https://www.canada.ca/
Article Written By: NA
Original Article Posted on: 2020-12-24
Link to Original Article: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances.html