This blog post is for my fellow Canadians… can I get an eh in here??? (Okay, I don’t say it that much either.)
So you’re an AWESOME employer. You da boss. And you have AWESOME employees that you couldn’t do it without. And it’s going to be Christmas soon! You want to spoil those hard working people with a small gift.
Can you write this off come tax time against your income?
Yep. You bet. You can claim 100% of client gifts against your income.
If you give a non cash gift it is deductible for you and non taxable for your employee given that it meets certain requirements. The requirement are that the gifts are under the $500/per year limit on gifts to employees and they must be for a special occasion such as a religious holiday, birthday, or wedding etc
Will your employee have to claim your gift on their income tax if you give them cash?
If you gift cash or near cash such as a gift card then the amount of the gift is deductible to you and needs to be included in your employee’s income.
So, you incredible boss you, feel free to GIVE!!!!
Here is a link to the CRA website that explains gifts and awards to employees.
Published by lindsayplumbmoneyblog
I'm a busy mom of two boys, one fur baby, and a wife to my business partner. After close to two decades as a licensed professional in the personal finance industry, I've helped thousands of busy women overcome the overwhelm and develop sustainable financial habits for MORE money, MORE confidence, and MORE energy for the things and people that matter MORE.
I'm a firm believer that life is meant to be lived to the fullest. I don't believe in the traditional 9-5, 40 hour work week. Instead, I've created a lifestyle that allows me to prioritize my family and the experiences we want to have together.
I'm not working just to retire. I'm working to live a life that's fulfilling and meaningful, and to share that joy with the people I love. I want to be there for my kid's baseball games. I want to travel the world while my family is young enough and healthy enough to enjoy it.
My clients are busy moms that are way too smart to feel dumb about money and make way too much money to feel like they are stuck on the paycheque-to-paycheque hamster wheel. My clients want to live life to the fullest, just like me. My clients want MORE.
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