Variety of Tax-Free Benefits for Employees

Recently, the Financial Post featured an article by Tom Nicolopoulos of KPMG in which he wrote about a variety of tax-free benefits that employers can offer their employees.

The author’s focus was on health club memberships and fitness activities that may, or may not, be non-taxable benefits to the employee. As usual with these types of benefits, the key is in the administration of the program and the interpretation of that implementation by the Canada Revenue Agency (CRA). Accountants and tax planners earn large sums of money interpreting the CRA’s rules and obtaining interpretations from the CRA directly.

The author also indicated that the CRA publishes a document called Employers’ Guide Taxable Benefits and Allowances which lists up to 75 benefits. Among them is included loans obtained as a result of employment, which is where Group Employee Mortgages come in.

The CRA publishes certain rules when it comes to employers obtaining or arranging a loan for employees, including whether or not the loan is a taxable benefit or not. I’ve included it below for your reference.

If your company is looking for ways to compensate employees for attraction and retention purposes then consider a group mortgage subsidy from GEM – it may be more effective than bonuses and other forms of compensation and, implemented properly, is a potentially non-taxable benefit that your employees will appreciate greatly.

Employers Guide to Taxable Benefits and Allowances – CRA – Canada Revenue Agency