Social events and hospitality functions

Social events

If you provide a free party or other social event to all your employees and the cost is $100 per person or less, we do not consider it to be a taxable benefit.

Additional costs such as transportation home, taxi fare, and overnight accommodation are not included in the $100 per person amount. If the cost of the party is greater than $100 per person, the entire amount, including the additional cost, is a taxable benefit.

If the benefit is all cash, do not include the GST/HST. However, if all or part of the taxable benefit is non-cash and is not an exempt or zero-rated supply, include the GST/HST in the value of that part of the benefit.

For more information, see Interpretation Bulletin IT-470, Employees' Fringe Benefits.

Hospitality functions

A hospitality function is where an employer provides a meal or other hospitality services at a work-related function that is not a social event as described above.

Where the purpose of the event is work-related, such as a planning or education session, or a networking session, we consider the primary beneficiary to be the employer, and therefore the event is not taxable.

Where the event is to celebrate the completion of a project or task, or a thanks for a job well done, the benefit is taxable, and must be included in the employee's income.

Date modified:

2015-12-17