It’s the most wonderful time of the year! Time to start thinking about how you’re going to reward your employees for all the hard work they’ve done this year. And this year more than ever, spreading the holiday cheer is so important! So, we thought we’d do a video all about buying Christmas gifts for employees!
As you may know, the general rule the CRA has in place is that employers can purchase gifts for employees costing up to $100 per employee. That amount is deductible to the employer and not taxable to the employee.
What’s Different This Year?
This year, because of the COVID-19 pandemic, so many people are working from home who normally do not. Because of this, there is a rule that can allow for a little extra this year. The Canada Revenue Agency says employers can give employees up to $500 to be used to purchase home office supplies. This amount is also tax deductible to the employer and not taxable to the employee.
However, there is a small catch. Employees need to provide receipts for their home office purchases to the employer. The employer needs to be able to demonstrate that the money was actually used for home office upgrades. But, there are quite a few things that can be considered home office supplies and that can make working from home a little more comfortable! So, definitely don’t miss out on this opportunity.
If you’re buying Christmas gifts for employees this year, give this video a watch for some information on the $500 bonus that is available.
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It is always a good idea to contact your advisor to discuss your personal or business finances. We stay up to date on the current happenings in the business world and are always happy to help our clients! If you’re in need of an accountant, check out our services page or book a “Get to Know You” meeting with us by clicking here!