Board and lodging

You may give your employee board and lodging which means that you provide him or her with accommodations and, in some cases, food. If you provide only meals to an employee, see Overtime meals or allowances and Subsidized meals.

If you provide free lodging, or free board and lodging, to an employee, the employee receives a taxable benefit. As a result, you have to add to the employee's salary the fair market value of the board and lodging you provide.

If you provide subsidized lodging, or subsidized board and lodging, to an employee, the employee receives a taxable benefit. As a result, you have to add to the employee's salary the fair market value of the board and lodging you provide, minus any amount the employee paid.

Exceptions to the rules

There are certain situations that can affect the value of the taxable benefit your employee gets if you provide free or subsidized board and lodging. The exceptions are as follows:

• If you provide board and/or lodging allowances to players on sports teams or members of recreation programs, see Board and lodging allowances paid to players on sports teams or members of recreation programs.
• If you provide board, lodging, and/or transportation to an employee who works at a special work site or a remote location, see Board, lodging, and transportation at a special work site and Board, lodging, and transportation at remote work locations.

Reporting the benefit

Report the taxable amount in box 14 "Employment income" and in the "Other information" area under code 30 at the bottom of the employee's T4 slip. For more information, see T4 - Information for employers.

Date modified:

2016-12-15