Question

kim sparks her car in downtown quebec city where the head office is located.the employees who work in downtown have their monthly parking fees of $250 including taxes paid by their organization directly to the parking lot.what is kim's semi-monthly non-cash taxable benefit?

Answer 1

Disclaimer- ANSWER is Provided as Per Canadian Tax Laws as Quebec is City of Canada.

ANSWER:

Parking Fees including taxes paid by Organization to Parking Lot is Tax Benefit for the Employees.

Net Taxable Benefit for Parking Fees = Payment made by the Organization including Taxes (-) Any Parking Fees Paid by Employee.

In Given Case, Organization has Paid $ 250 including Taxes as monthly Parking Fees for their Employees directly to Parking Lot.

As Employees are not paying any Parking Fees Entire Amount Paid by Organization for Parking Fees to Parking Lot is Taxable Benefit for the Employees.

EXPLAIN the TERM-

Taxable Benefit means Benefit received from Employer which will be Taxable to the Employees.

Non-Cash Taxable Benefit means Taxable Benefit which is not paid in cash to the Employees.

So, Monthly Non-Cash Taxable Benefit for the Kim will be $ 250. (Payment made by Organization for Parking including Taxes to Parking Lot.)

So, Semi-Monthly Non-Cash Taxable Benefit for Kim will be $ 125. ($ 250 Monthly Parking Fees Paid by the Organization / 2).