Each year, the CRA provides a list of commonly requested audit adjustments to an employer’s payroll as a result of wages and benefits not being correctly reported by the employer. The following is from a series of top ten CRA adjustments.
Top Ten CRA Adjustments
Number 9: Medical expenses and insurance – if an employer pays for an employee’s medical expenses, outside of amounts covered by a private health services plan, this value is a taxable benefit to the employee. For example, an employer agrees to pay for smoking cessation medication which is not covered by its health services plan. Increase your compliance knowledge by attending the CPA’s Taxable Benefits or Pensions and Benefits from a Payroll Perspective professional development seminars for more information on medical expenses and insurance.