Do you give your employee a benefit, an allowance, or an expense reimbursement?

Author: External Author | | Categories: Cash Flow Management , Chartered Professional Accountant , Cloud-Based Accounting , Financial Planning

Blog by Priti Lad Professional Corporation

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.

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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



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