If you are an employer and offering taxable benefits to your employees, please review the 2023 updates on taxable benefits policies on gifts, awards, long-service awards, social events, hospitality functions, and parking. A summary is provided below:
Gifts, awards, and long-service awards: certain gift cards that cannot be converted into cash can be treated as ‘non-cash’ if they meet the criteria. Eligible cards can be considered part of the $500 limit for non-cash gifts and awards during the year. Learn more here.
Parking: a new ratio was provided to help simplify when a taxable benefit must be included as income, where a limited number of parking spaces are provided to employees by the employer. Learn more here.
Social events and hospitality functions: a new category was created for virtual social events. Virtual social events provided by an employer for its employees will not be considered a taxable benefit when the cost per employee is within the limit applicable to that type of virtual social event. Learn more here.