Rewritten content – Event tickets – Determine if a benefit is taxable

• Reason for change: Clarity, completeness and plain language
• Effective date: Not applicable
• Refer to: Event tickets

Brief description

Generally, event tickets an employer provides, pay or reimburse to employees are taxable. Depending on the situation, the benefit may not be taxable.

Published on: December 5, 2023

Rewritten content – How to calculate deductions, including CPP2

• Reason for change: Legislation, clarity, completeness and plain language
• Effective date: Not applicable
• Refer to: How to calculate

Brief description

Determine which methods you can use to calculate deductions, get the CPP contributions tables, the CPP2 contributions tables, the EI premiums tables, the claim codes and the income tax tables and how to manually calculate the amount to withhold

Published on: November 21, 2023

2024 Guide T4127 – Payroll Deductions Formulas – 119th Edition

• Reason for change: Legislation
• Effective date: Deductions made on or after January 1, 2024
• Refer to: 2024 Guide T4127 – Payroll Deductions Formulas – 119th Edition

Brief description

If you are a payroll software provider or a company which develops its own in-house payroll solution, you can now consult the T4127 119th Edition effective January 1st, 2024.

This guide has the formulas you need to determine federal, provincial (except Quebec), and territorial income taxes, Canada Pension Plan (CPP) contributions, and employment insurance (EI) premium deductions.

Published on: November 21, 2023

2024 rates and maximums for CPP, CPP2 and EI

• Reason for change: Legislation
• Effective date: Deductions made on or after January 1, 2024
• Refer to: Get ready to make deductions

Brief description

The CRA and Employment and Social Development Canada announced the new rates for 2024.

Learn more:

• Canada Revenue Agency announces maximum pensionable earnings and contributions for 2024
• Canada Employment Insurance Commission confirms 2024 Employment Insurance premium rate

Published on: November 10, 2023

Free webinar – Personal services business (PSB)

• Reason for change: Not applicable
• Event date: October 25, 2023 Registration closed
• Refer to: Personal Services Businesses – Event hosted by Canada Revenue Agency

Brief description

Personal Services Businesses – Event hosted by the CRA

The CRA is hosting a free webinar to help incorporated individuals determine whether they meet the definition of a personal services business, and what that means in terms of tax obligations.

This webinar is for you if you are:

• Registered as a corporation and you're the only shareholder and employee of your corporation
• Doing work for one other corporation that would normally be done by an employee
• A worker who is considering incorporating for work

Registration closed The webinar is on Wednesday, October 25, 2023, at the following times:

Published on: October 13, 2023

Boxes added to the T4 and T4A slips – Payer or employer offered dental benefits

• Reason for change: Legislation
• Effective date: Slips filed for calendar year 2023 and after

• Refer to:

  • T4 slip – Information for employers
  • T4A slip – Information for payers

Brief description

The following new boxes were added:

• T4 slip

  Box 45 – Employer-offered dental benefits

• T4A slip

  Box 015 – Payer-offered dental benefits

These new boxes must be used to indicate whether the employee/recipient or any of their family members were eligible, on December 31 of that year, to access any dental care insurance, or coverage of dental services of any kind, that an employer or payer offered.

Published on: October 13, 2023

Boxes added to the T4 slip and T4 Summary – CPP2 and QPP2 contributions

• Reason for change: Legislation
• Effective date: Slips filed for calendar year 2024 and after
• Refer to: T4 slip – Information for employers

Brief description

The following new boxes were added:

• T4 slip

  • Box 16A – Employee's second CPP contributions (CPP2)
  • Box 17A – Employee’s second QPP contributions (QPP2)

• T4 Summary

  • Box 16A – Employee's second CPP contributions (CPP2)
  • Box 27A – Employer’s second CPP contributions (CPP2)

These new boxes must be used to report the amount of CPP2 or QPP2 contributions.

Published on: October 13, 2023

CRA administrative policy introduced – Interest benefit may not be taxable for certain low-interest or interest-free loans received because of employment

• Reason for change: New CRA administrative policy
• Effective date: Benefits provided on or after January 1, 2023
• Refer to: Loans and employee debt

Brief description

Where a loan is received because of employment, the benefit will not need to be reported when:

• Total amount of all loans received is $10,000 or less per calendar year
• Term of the loan(s) is 60 days or less
• loan is not received because of shareholdings

Published on: September 25, 2023

CRA administrative policy introduced for full-time remote workers – Province of employment (POE)

• Reason for change: New CRA administrative policy
• Effective date: Determination made on or after January 1, 2024
• Refer to: Determine the province of employment (POE)

Brief description

Previously, the POE for full-time remote workers was determined by the location of the establishment of the employer that pays their remuneration.

Under the new policy, the POE for a full-time remote worker is determined by the location of the establishment of the employer to which they can reasonably be considered to be attached.

Indicators have been developed to assist employers in the determination of whether a worker is considered attached to an establishment.

Published on: September 15, 2023

Rewritten content – Get ready to make deductions, including CPP2

• Reason for change: Legislation, clarity, completeness and plain language
• Effective date: For CPP2 deductions made after anuary 1, 2024
• Refer to: Get ready to make deductions

Brief description

Learn about Canada Pension Plan (including second additional CPP contributions), Employment Insurance and the income tax deductions, including the CPP, CPP2, EI and income tax rates, the CPP/EI maximums and the CPP exemptions.

Published on: September 5, 2023

Distribution requirement changes – Consent may not be required when distributing slips by email or using a secure electronic portal

• Reason for change: Legislation
• Effective date: Effective retroactively
• Refer to: Distribute the slips

Brief description

Employers and payers can distribute T4, T4A, T5, T2202 or T4FHSA slips using an employer or payer's secure electronic portal without obtaining written or electronic consent from the employees or recipients before distributing the slips unless an exceptional situation applies, or the taxpayer has requested the information return be provided in paper format.

Published on: September 5, 2023

Electronic filing requirement changes – Information returns may need to be filed electronically if more than 5 slips

• Reason for change: Legislation
• Effective date: Returns filed on or after January 1, 2024
• Refer to: How to file information returns

Brief description

The threshold for mandatory electronic filing of income tax information returns for a calendar year has been lowered from 50 to 5 for information returns filed after December 31, 2023.

Published on: August 12, 2023

Rewritten content – Payment of fees for services

• Reason for change: Clarity, completeness and plain language
• Effective date: Not applicable
• Refer to: Payments of fees for services

Brief description

Payers are required to report fees for services on a T4A, T5018 or T1204 slip, depending on who the payment was made to.

Content was rewritten and improved to provide guidance on indicators when a payment is made for a good or a service.

Published on: August 3, 2022

Electronic remitting requirement changes – Employers and payers should need to pay electronically if paying (remitting) more than $10,000

• Reason for change: Legislation
• Effective date: Payments made on or after January 1, 2024
• Refer to: How to remit (pay)

Brief description

As of January 1, 2024, remittances or payments to the Receiver General of Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically.

Published on: July 17, 2023

CRA administrative policy updated – Long-service awards part of the gift card policy

• Reason for change: Update to CRA administrative policy
• Effective date: Benefits provided on or after January 1, 2023
• Refer to: Gifts, awards, and long-service awards

Brief description

Change allows certain gift cards to be used for providing long-service awards. Criteria for the gift cards able to be used for long-service awards is the same as for gift cards used in providing non-cash gifts and awards.

Published on: February 28, 2023

CRA administrative policy introduced and updated – New ratio to simplify when parking benefit is taxable

• Reason for change: Update and new CRA administrative policy
• Effective date: Benefits provided on or after January 1, 2022
• Refer to: Parking

Brief description

A new ratio has been provided to help simplify when a taxable parking benefit must be included in income in cases where a limited number of parking spaces are provided to employees by the employer.

Published on: October 13, 2022

CRA administrative policy introduced and updated – Benefit may not be taxable for certain social events

• Reason for change: Update and new CRA administrative policy
• Effective date: Benefits provided on or after January 1, 2022
• Refer to: Social events and hospitality functions

Brief description

A new category has been created for virtual social events. Virtual social events can be provided by an employer for its employees and not be considered to be a taxable benefit as long as the cost per employee is $50 or less when only hospitality is provided, or $100 or less where both hospitality and entertainment are provided. Where the event is both in-person and virtual, for administrative convenience, the current cost limit per person of $150 will apply.

Published on: October 13, 2022