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DeSerres gift cards are valid in all our stores and on our website. Simply enter your gift card’s serial number and hidden PIN at the right of it when selecting this payment method. Please note that the gift cards cannot be used when paying through ShopPay.
- On this page
- Determine if the benefit is taxable
- Calculate the value of the benefit
- Withhold payroll deductions and remit GST/HST
- Report the benefit on a slip
- References
- Document navigation
•Determine if the benefit is taxable
•Calculate the value of the benefit
•Withhold payroll deductions and remit GST/HST
•Report the benefit on a slip
Generally, gifts, awards and long-service awards you provide to your employees are taxable.
Depending on your situation, the benefit arising from certain non-cash gifts and awards may not be taxable under the CRA's administrative policy .
What is a "gift"
A gift has to be for a special occasion such as a religious holiday, a birthday, a wedding, or the birth of a child.
What is an "award"
An award has to be for an employment-related accomplishment such as outstanding service, or employees' suggestions. It is recognition of an employee's overall contribution to the workplace, not recognition of job performance. Generally, a valid, non-taxable award has clearly defined criteria, a nomination and evaluation process, and a limited number of recipients.
If the benefit is taxable, the value of the benefit is equal to the combined total fair market value (FMV) of the gifts and awards provided in the year.
Where our policy on non-cash gifts and awards applies, only amounts over the $500 limit must be included in the employee's income.
Non-cash and near-cash: Option 1
Withhold: Income tax CPP EI (do not withhold) Remit: GST/HST in certain situations
Cash: Option 2
Withhold: Income tax CPP EI Do not remit: GST/HST The amounts must be included in the pay period they were received or enjoyed. Learn how to calculate deductions and the GST/HST to remit on benefits: How to calculate – Calculate payroll deductions and contributions.
T4 slip – Non-cash and near-cash : Option 1
Report on: Box 14 – Employment Income Box 26 – CPP/QPP pensionable earnings Code 40 – Other Information
T4 slip – Cash : Option 2
Report on: Box 14 – Employment Income Box 24 – EI insurable earnings Box 26 – CPP/QPP pensionable earnings Code 40 – Other Information
T4A slip : Option 3
Report on: Code 028 – Other Income in Other Information for gifts and awards provided by a person other than the employer Code 154 – Cash award or prize from payer in Other Information for cash award or prize from a manufacturer provided directly to an employee of the dealer Learn more: Fill out the slips and summaries – File information returns (slips and summaries).
Related
Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance Income Tax Folio S3-F9-C1, Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime
Legislation
ITA: 6 Amounts to be included as income from office or employment ITA: 6(1)(a) Value of benefits ITA: 6(1)(b) Personal or living expenses (allowances) ITA: 56(2) Indirect payments CPP: 12(1) Amount of contributory salary and wages ETA: 173 Taxable benefit is considered a supply for GST/HST purposes IECPR: 2(1) Amount of insurable earnings IECPR: 2(3) Earnings from insurable employment IECPR: 2(3)(a.1) Earnings from insurable employment – amount excluded as income under 6(1)(a) or (b), 6(6) or (16) of the ITA
•Next: Determine the tax treatment of payments other than regular employment income
Gift Card. DeSerres Gift Cards are exchangeable for any product online and in any DeSerres store. An original way to give the pleasure of creating! DeSerres Gift Cards have no expiry date and may be exchanged at any time online and in one of our stores across Canada.
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Dec 14, 2023 · The CRA says gift cards, including gift certificates, chip cards and electronic gift cards, can be considered “non-cash” and thus potentially non-taxable provided the card meets certain conditions.
Gifts and awards to non-arm's length employees will thus be taxable. The administrative policies apply to non-cash gifts and awards including: a gift for a special occasion such as a religious holiday, birthday, wedding, or birth of a child.
Nov 11, 2022 · Under the CRA's administrative policy, a non-cash gift or award is not taxable if it meets the following criteria: the aggregate fair market value of all non-cash gifts or awards provided by the employer to the employee in the year is of $500 or less (including taxes); in the case of a gift, the gift was for a special occasion;
May 3, 2023 · Although Canada has no gift tax, in some cases, a gift can trigger tax rules that could increase your income taxes and prevent a win-win situation for both you and the recipient. Follow these tips to limit the tax burden for the giver and receiver.
People also ask
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Are gifts to non-arm's length employees taxable?
