PR 2002/12/04 - Fact Sheet: Gifts and Awards Given by Employers to Their Employees
December 4, 2002
CCRA Fact Sheet December 4, 2002
GIFTS AND AWARDS GIVEN BY EMPLOYERS TO THEIR EMPLOYEES
The CCRA is reminding employers about how gifts and awards given to employees are taxed. A policy change that came into effect in 2001 makes it easier for employers to administer their gifts and awards programs because it removes the burden of determining the fair market value of small gifts and awards.
Employers are reminded that the policy does not apply to cash or near-cash gifts and awards. Near-cash is any item that can be readily converted to cash or that is equivalent to cash.
Employers are encouraged to contact the CCRA's Business Enquiries line at 1-800-959-5525 to make sure that any gifts or awards they plan to give their employees fall within the specific guidelines.
To mark special occasions such as Christmas, Hanukkah, birthdays, or a marriage, employers can give their employees two non-cash gifts per year on a tax-free basis. In addition, to honour achievements such as years of service or meeting safety standards, employers can give their employees two non-cash awards per year on a tax-free basis.
The two gifts' or the two awards' total cost to the employer, including taxes, cannot be over $500 per year.
Employers can deduct the total cost of the gifts or awards from their taxes.
Employees do not have to declare the cost of the gifts or awards as part of their taxable income.
If the cost of each gift or award is over the $500 limit, the employer must include the full fair-market value of the gift(s) or award(s) in the employee's income.
If an employer gives two or more gifts--or two or more awards--in a single year and their total cost is over the $500 limit, the employer may have to include the fair-market value of one or more of the gifts or awards in the employee's income.
This is determined by the cost of each gift or award, and also by the number of gifts or awards given in a single year.
The new policy does not apply to cash or near-cash gifts and awards such as gift certificates, gold nuggets, or other items that can easily be converted into cash. The value of this type of gift or award is considered a taxable employment benefit.
Examples and further details are available on the CCRA Web site at www.ccra.gc.ca/gifts
For media information
Office of the Minister of National Revenue
|
Derik Hodgson, Press Secretary |
(613) 995-2960 |
Media Relations (National)
|
Colette Gentes-Hawn |
(613) 957-3522 |
|
Michel Proulx |
(613) 946-3461 |
|
Caroline Jacques |
(613) 954-7928 |
|
Fax |
(613) 941-9430 |
Media Relations (Regions)
Atlantic
|
New Brunswick Heather Cameron |
(506) 636-5485 |
|
Nova Scotia Roy Jamieson |
(902) 426-9889 |
|
Newfoundland and Labrador Richard Sparkes |
(709) 772-2585 |
|
Prince Edward Island Doug Shackell |
(902) 628-4000 |
Quebec
|
Québec |
(514) 283-2464 |
|
Dominique McNeely |
ext. 8331 |
|
France Simard |
ext. 8281 |
Northern Ontario
|
Ottawa Technology Centre Ottawa Tax Services Office
|
(613) 991-0545 |
|
Customs, Ottawa and the Valley Pierre Marquis |
(613) 991-5197 |
|
International Tax Services Office Luce Morin |
(613) 998-9009 |
|
Sudbury Tax Services Office / Tax Centre Customs, Sault Ste. Marie
|
(705) 671-0594 |
|
Belleville Tax Services Office Peterborough Tax Services Office
|
(613) 391-2654 |
|
Thunder Bay Tax Services Office Customs, Northwestern Ontario
|
(807) 625-7027 |
Southern Ontario
(See also Customs Border Services Offices)
|
London Tax Services Office Keith Brooks |
(519) 675-3248 |
|
Kitchener/Waterloo Tax Services Office Keith Brooks |
(519) 675-3248 |
|
Toronto North Tax Services Office Peter Delis |
(416) 512-4135 |
|
Toronto Centre Tax Services Office Sam Papadopoulos
|
(416) 973-4163 (416) 512-4135 |
|
Windsor Tax Services Office Pat Kisil |
(519) 973-7102 |
|
St. Catharines Tax Services Office Jean D'Amelio Swyer |
(905) 984-2289 |
|
Hamilton Tax Services Office Lee McConnell |
(905) 572-2448 |
|
Toronto West Tax Services Office Mark Butler |
(905) 566-6606 |
|
Toronto East Tax Services Office Sam Papadopoulos |
(416) 973-4163 |
Southern Ontario - Customs Border Services Offices
|
Greater Toronto Area Mark Butler |
(905) 676-2856 |
|
Niagara Falls / Fort Erie Division Jean D'Amelio Swyer |
(905) 984-2289 |
|
Windsor / St. Clair Division Danny Yen
|
(519) 257-6490 (519) 973-7102 |
Prairie
|
Saskatoon Jerry Shoemaker |
(306) 975-4603 |
|
Manitoba Emilia Kotris
|
(204) 983-2336 (204) 984-5019 |
|
Regina Debbie Johnson |
(306) 780-3469 |
|
Calgary Gordon Luchia |
(403) 691-6850 |
|
Edmonton Ron D. Quinn |
(780) 495-4771 |
Pacific
|
Vancouver Tax Services Office Metro Vancouver Customs
|
(604) 691-4759 (604) 691-4043 |
|
Burnaby-Fraser Tax Services Office Surrey Tax Centre
|
(604) 587-2286 (604) 587-2142 |
|
Vancouver Island Tax Services Office Southern Interior Tax Services Office
|
(250) 363-8022 |