DISABILITY-RELATED EMPLOYMENT BENEFITS
Disability-related employment benefits are designed to assist employees with severe and prolonged disabilities or mobility impairments in performing their job duties. The Canada Revenue Agency (CRA) provides specific guidelines to determine whether these benefits are taxable or non-taxable.
CRA's Non-Taxable Disability-Related Benefits
- Transportation Costs: Employers can provide non-taxable benefits to cover the cost of transportation for employees with disabilities, such as parking near the work location or travel expenses.
- Special Parking Benefits: If an employer covers the parking costs at or near the work site for employees with disabilities, this benefit is non-taxable.
- Attendant Services: Employers may pay for attendant services for employees with severe mobility impairments to help them perform their job duties. This benefit is typically considered non-taxable when deemed reasonable and directly related to employment.
Additional Guidance from the CRA
The CRA outlines specific scenarios and requirements for disability-related benefits:
- Employers must maintain detailed documentation to justify the provision of these benefits.
- Benefits must directly support the employee’s ability to perform their employment duties.
- Supporting documentation may include a completed Form T2201 (Disability Tax Credit Certificate).
Examples of Eligible Disability Benefits
- Covering the travel costs for an employee who is blind or has mobility challenges, provided the issue is traveling solely for work purposes.
- Paying for para-transportation or other accessible modes of travel required to reach the workplace.
- Providing parking spaces designated for employees with disabilities near their work location.
Taxable Disability Benefits
Disability-related benefits may become taxable if they:
- Exceed reasonable amounts required for work purposes.
- Include elements that are unrelated to the performance of job duties.
Employer Responsibilities
- Employers should ensure compliance by understanding CRA requirements for providing non-taxable benefits.
- All taxable disability-related benefits must be reported on the employee’s T4 slip.
- Proper records must be kept to support the classification of benefits as non-taxable.
Additional Resources
For more details, refer to the CRA’s comprehensive guidelines:
