CRA Compliance

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If you’re reviewing a termination package that includes a ‘retiring allowance,’ it might sound like a perk tied to retirement. That makes sense, right? Not really.

Despite the name, a retirement allowance in Canada has nothing to do with retirement. In most employment law cases, it simply means money paid to an employee upon or after termination of employment in recognition of long service. It’s a tax term, not a legal entitlement, and it often leads to confusion when planning severance packages or reporting to the CRA. Let’s break down what it is – and what it isn’t.Continue Reading Retiring Allowances – Don’t Be Fooled by the Name

The holiday season is a time when many employers want to show appreciation to their employees. Gift cards are a popular and convenient choice for recognizing hard work and spreading some seasonal cheer.

But employers need to be aware of the employment and tax implications of gifting gift cards, especially here in Canada. Missteps can result in unintended financial consequences for both the employer and the employee.

If you’re planning to hand out gift cards this year, here’s what you need to know.Continue Reading Keeping Gift Giving Jolly: How Employers Can Avoid Tax Surprises