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transportation, board and lodging when you are employed at a special work site or remote
You are not allowed to write off the expenses of transportation,
board or lodging which relate to your employment, but allowances that you
receive from your employer for these costs may not be taxable to you.
If you have received allowances from your employer for board, lodging, or
transportation in relation to working temporarily at a special work site or
remote work location, these allowances may not be taxable to you, under
certain conditions. These conditions include:
You maintained a principal place of
residence at another location, and this residence was available to you
throughout the time you were away at the work site, and due to the distance
of your principal place of residence from the work site, you could not
reasonably have been expected to commute daily to the work site, or
The work site is at a location which
is so remote from any established community that you could not reasonably be
expected to establish and maintain a self-contained domestic establishment;
To perform your duties of employment
you were required to be away from your principal place of residence, or at
the special work site or location for not less than 36 hours.
Payments received from a disability insurance plan are
not taxable when the employee has either paid the premiums, or the premium
amounts paid by the employer have been included in the employee's income as
a taxable benefit. See the disability
insurance article for more information.
Employee profit sharing plans
Tax is payable when distributions are made from an
employee profit sharing plan to employees, but these payments are not
subject to Canada Pension Plan or Employment Insurance premiums.
Private Health Services Plan benefits
Private health services plan (PHSP) payments made on behalf of employees and their dependents are not
taxable to the employees, and there are no CPP or EI premiums charged on these
If employees pay a portion of the PHSP premiums, this qualifies as a medical expense for purposes of the medical expense
Workers' compensation payments received are not taxable
income. They are, however, added into total
income when filing the tax return, then deducted again to get to taxable
income. Total income is used for calculating many income-tested
Employee Home Relocation Loans
When a home relocation loan to an employee results in a
taxable benefit being included in the employee's income, a home relocation
loan benefit deduction is available to the employee, which would partially
offset the taxable benefit. See our article on Employee
Loans and Employee Loan Subsidies.