As an employer in Canada, providing non-taxable benefits to your employees can be a great way to attract and retain top talent while also minimizing tax liability. In this blog, we will discuss the top 10 non-taxable benefits for employers in Canada.
Health and Dental Benefits
Health and dental benefits are one of the most common non-taxable benefits offered by Canadian employers. These benefits can include coverage for prescription drugs, dental services, vision care, and more.
Group Life Insurance
Group life insurance is another popular non-taxable benefit for Canadian employees. Employers can provide a basic level of coverage to their employees free of charge, and employees can often choose to purchase additional coverage at their own expense.
Group Disability Insurance
Group disability insurance provides income replacement in the event of an injury or illness that prevents an employee from working. This benefit is non-taxable when the premiums are paid by the employer.
Employee Assistance Programs
Employee assistance programs (EAPs) provide confidential counseling and support to employees and their families. This benefit is non-taxable when provided by the employer.
Education Assistance
Employers can offer education assistance to their employees in the form of tuition reimbursement or paid training courses. These benefits are non-taxable up to a certain amount.
Fitness Memberships
Fitness memberships or wellness programs provided by the employer can be non-taxable benefits for employees. This can include gym memberships, yoga classes, and more.
Transit Passes
Employers can provide transit passes to employees for their daily commute, which is a non-taxable benefit up to a certain amount.
Parking
Employers can provide free or subsidized parking to their employees, which is a non-taxable benefit up to a certain amount.
Mobile Phones
Providing a mobile phone to employees for work purposes can be a non-taxable benefit, as long as it is not considered a personal use item.
Gifts and Awards
Employers can provide gifts and awards to their employees as a way of recognizing their achievements. These benefits are non-taxable up to a certain amount.
By offering these non-taxable benefits to employees, Canadian employers can not only attract and retain top talent but also save on taxes. Make sure to consult with a tax professional to ensure that you are properly administering these benefits and staying compliant with Canadian tax laws.
