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T4 boxes

Hello there!

If there is a phone, fuel, and truck used added to the employee’s paychq, is it considered as taxable income and must be added to employee’s gross income for t4? Thanks in advance!!

If the Employer’s accountant added it there, then they should have used the correct formulae to put them there, and it should be correct.

If it differs from the amount that you have calculated that section 6 of the Income Tax Act requires be included, then you will need to ask your employer or accountant to reconcile for that particular case.

It added on employee’s paychq but not on the year to date gross salaray. For example:

Employee’s gross salary for the year: $5,000
Fuel: $60
Phone: $100

Therefore, the amount needed to put on box 14 would be $5160? Thanks!

I would expect that is expense reimbursement but you better check with the employer. If it is expense reimbursement, it would not be added to T4.

Oh okay so expense reimbursement to the employee is not a taxable income? Thanks

Based on that example, it would be taxable. The example does not sound like a qualifying non taxable reimbursement.

If you are the employee, the employers accounting department will be able to explain the details of a specific case to you. Since there are penalties for getting it wrong, the employers accounting department will be paying attention to getting it right…

Okay thanks!

Cos what I see on the paychq, for example:

Gross pay: $1000
Withheld: $200
Net pay: $800
Then there is fuel for $40 and phone for $60

Total net pay is $800 plus $100 (phone and fuel) = $900

And total gross paid is $1100