This guide provides a simple overview of how to manage taxable benefits associated with the Tedy platform. It outlines the responsibilities of both employers and employees regarding tax deductions and reporting, while clarifying which data should be used.
For employees:
Tedy taxable benefits are considered employment income.
Reimbursed amounts are added to the employee’s total annual salary.
These amounts must be reported on the T4 and RL-1 slips.
For employers:
Employers are responsible for calculating taxable benefits based on reimbursed amounts.
They must deduct the appropriate taxes each pay period.
These amounts are treated the same as regular payroll deductions.
Tedy provides automated reports to ensure accurate tracking of amounts used.
In the “Reports” section, the “Reimbursed” column represents the taxable benefits.
Use this column as the reference for all tax calculations
Do not use allocated amounts
1. Periodic Deductions
Employers must calculate taxable benefits based on reimbursed amounts
Apply payroll deductions as with regular salary
Adjust amounts as needed based on actual usage
2. Year-End Reporting
Reimbursed amounts through Tedy must be reported on tax forms:
Quebec (RL-1):
Box A: Employment income
Box L: Taxable benefits
Federal (T4):
Box 14: Employment income
Box 40: Taxable benefits
Report reimbursed amounts, not allocated amounts.
Set Up Tax Codes
Contact your payroll provider to add a taxable benefit code for Tedy amounts
Allocation of Deductions
Spread the total annual estimated benefits across pay periods
Adjust based on actual reimbursements at year-end or when an employee leaves
Adjustment Tracking
Regularly update taxable benefit amounts based on Tedy reports
Ensure all payroll deductions and employer contributions are calculated and remitted before year-end
Year-End Reconciliation
Before year-end (or upon employee termination), reconcile reported amounts with actual reimbursements
Ensure final amounts are accurately reflected on T4 and RL-1 slips
Payroll deductions and employer contributions must be remitted on time
Always use reimbursed amounts as the basis for calculations
It is recommended to consult a tax professional or relevant authorities if needed
