Reporting compensation for a housing loss
Question: We have agreed to compensate one of our employees for a financial loss he incurred in selling his home in one city and buying a new one in another due to a job change within the company. We are compensating him a total of $75,000, to be paid in three installments of $30,000 in December 2013, $25,000 in April 2014 and $20,000 in September 2014. I’m not sure how to report the payment on the employee’s T4.
Answer: If an employer pays or reimburses an employee for a housing loss, half of the amount paid or reimbursed that exceeds $15,000 is a taxable benefit to the employee. If paid in cash, the taxable benefit is subject to Canada/Quebec Pension Plan contributions, employment insurance (EI) and Quebec Parental Insurance Plan (QPIP) premiums and income tax deductions. (If not paid in cash, do not deduct EI or QPIP premiums).
Include the amount of the taxable benefit in box (14) and in the "other information" area of the T4 under code 40. If the employee is in Quebec, also report the taxable benefit on an RL-1 in boxes (A) and (L).
In this case, because the taxable benefit occurs in both 2013 and 2014, an amount for the taxable benefit must be reported in both years:
• For 2013 year-end reporting, the taxable benefit would be $7,500 (1/2 x ($30,000 - $15,000))
• For 2014 year-end reporting, the taxable benefit would be $22,500 (1/2 x ($75,000 - $15,000) - $7,500 (the taxable benefit reported in 2013)).
Question: We are preparing our payroll calendar for the upcoming year. Could you provide me with a list of statutory holidays in Canadian jurisdictions for 2014?
Answer: See the chart below for a listing of major 2014 statutory holidays.
New Year's Day
Wed., Jan. 1
Mon., Feb. 10
Mon., Feb. 17, 2014
Alberta, Manitoba (Louis Riel Day), Ontario, P.E.I. (Islander Day), Saskatchewan
Fri., Apr. 18, 2014
All jurisdictions (In Quebec, employers may choose to observe the holiday on Good Friday or Easter Monday. In some jurisdictions, retail business law requires commercial establishments to close on Easter Monday.)
Mon., May 19, 2014
Victoria Day is a statutory holiday under the Canada Labour Code and in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Ontario, Quebec, Saskatchewan, and Yukon.
National Aboriginal Day
Sat., Jun. 21, 2014
Northwest Territories only
Tues., Jun. 24, 2014
Tues., Jul. 1, 2014
First Monday in August
Mon., Aug. 4, 2014
Statutory holiday in British Columbia, New Brunswick, Northwest Territories, Nunavut and Saskatchewan (It is also a holiday, although not a statutory holiday, in Alberta. Municipal jurisdictions in other parts of Canada may also designate the day as a holiday.)
Mon., Aug. 18, 2014
Yukon Territory only
Mon., Sept. 1, 2014
Mon., Oct. 13, 2014
Thanksgiving Day is a statutory holiday under the Canada Labour Code and in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Ontario, Quebec, Saskatchewan and Yukon. In other jurisdictions, retail businesses may be prohibited from opening under business holidays legislation.
Tues., Nov. 11, 2014
Remembrance Day is a statutory holiday under the Canada Labour Code and in Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nunavut, Prince Edward Island, Saskatchewan and Yukon. In Manitoba and Nova Scotia, Remembrance Day is a statutory holiday under the Remembrance Day Act in each jurisdiction.
Thurs., Dec. 25, 201
Fri., Dec. 26, 2014
Boxing Day is a statutory holiday under the Canada Labour Code and in Ontario (In New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Quebec (until 1:00 p.m.), the day is a retail holiday and is covered under business holidays legislation.)
Also, please note that this is not a full list of holidays in all Canadian provinces/territories. In some jurisdictions, there are also holidays that apply to public-sector employers, as well as some that apply in certain municipalities.
Organizations must remember that for 2014, threshold 2 remitters are employers whose average monthly withholding in the 2012 calendar year was $50,000 or more.
Under the Income Tax Act, employers have the option of changing their remitting frequency based on their average monthly withholding amount in the previous year (2013 for 2014 remittances).If an organization wishes to take advantage of this option, contact any Canada Revenue Agency tax services office or tax centre.
Amounts that threshold 2 remitters deduct or withhold from remuneration paid any time during the month are due three working days (not counting Saturdays, Sundays or holidays) from the last day in the following periods: 1st to 7th, 8th to 14th, 15th to 21st and the 22nd to the end of the month.
If you use a service bureau or similar institution to remit your deductions, it is still your responsibility to make sure the institution withholds your deductions and remits them on time.
Annie Chong is the manager of the payroll consulting group at Carswell, a Thomson Reuters business. She can be reached at
or (416) 298-5085. Visit carswell.com for more information.