Setting up Benefits

A benefit is a good or a service that you give to your employee or members of their immediate family.  Examples include group insurance, medical & dental insurance, or meals & vehicle allowances.

To set up a benefit, you will click Payroll on the left navigation panel, and then click Employees.

Edit the employee you want to add a benefit for.  Scroll down to Benefits and click Add.

Click Add new benefit to add a benefit if it does not exist in your list already.

Give the benefit a name.  The name must be unique.

You will need to give some basic information about the benefit, such as whether it is cash or non-cash, and whether it is taxable.  If you are unsure, consult the CRA website for more information.

If this is a cash benefit, you will need to select an expense account to code the benefit to.

If the benefit is taxable, you will need to specify the T4 box.  If you are an employer in Quebec, you will also have to specify the RL-1 box.

Quebec employers will also have to indicate if the benefit should be included in the HSF calculation.

Once you have finished setting up the benefit, click Save.  The benefit should be added to your list for you to use.

Separate lists are maintained for arm’s length and non-arm’s length employees.  If you set up a benefit for arm’s length, but need the same for non-arm’s length, you will have to follow the same process on your non-arm’s length employees to get it on the right list.

If you need to edit information on an existing benefit, you can click Settings on the employee landing page.

Click Benefits to get a list of your existing benefits and click on the item you want to edit.

You can change any information you need to and save the setup once you are done.  This will update the settings on all employees using that benefit.

Last updated on July 20, 2020 by FCC AgExpert