COVID RELATED EMPLOYMENT BENEFIT AND OTHER

EMPLOYMENT BENEFIT AND OTHER

(Kevin McKenzie – Director General, Business Compliance Directorate, Collections and Verifications Branch, CRA)

1)     Commuting

In situations where an employee continues working at their regular place of employment, CRA will not consider an employee to receive a taxable benefit where their employer pays for, reimburses, or provides for a reasonable allowance for additional commuting costs incurred by the employee.  CRA would extend this position to situations where an employee is working from home because the regular place of employment is closed and CRA would not consider the employee to receive a taxable benefit where the employer pays for, reimburses or provides a reasonable allowance for commuting costs incurred to allow the employee to travel to their regular place of employment, to, for example, pick up computer equipment or perhaps other office equipment so that they can work from home.  Both of these provisions would be extended to the use of employer provided motor vehicles for this kind of travel.

2)     Parking

Where the regular place of employment is closed due to COVID-19, CRA will not consider that an employer provided parking spot at the place of employment available to an employee’s use would result in the taxable benefit.

Records and support must be retained.    

3)     Home Office Equipment

CRA will not consider an employee to receive a taxable benefit where the employer pays or reimburses up to $500 of computer or home office equipment to enable the employee to carry out their duties.  Common eligible expenditures could include chairs, desks, monitors and some computer equipment.  Amounts in excess of $500 must be included as a taxable benefit.  For example, if a $1,000 desk was purchased and the employee retained it, there would be a $500 benefit.