T4 slip - Box 40 - Gifts and awards
At the federal taxable gift or reward should be reported on the
T4 slip in Box 40, this amount is included in Box 14 of the T4.
For Quebec residents, a taxable gift or reward is
reported on the RL-1 slip in Box L and the amount is included in
box A of the RL-1.
The rules regarding gifts or rewards are somewhat different
between the federal and Quebec. It is the employer's responsibility
to determine what is taxable under federal jurisdiction and
Quebec.
However, for you to ask the right questions to those concerned,
we suggest you visit the following links:
For the CRA
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/gifts-awards-social-events/gifts-awards-long-service-awards.html
For Revenu Québec
https://www.revenuquebec.ca/en/businesses/source-deductions-and-employer-contributions/special-cases-source-deductions-and-employer-contributions-in-certain-situations/taxable-benefits/list-of-taxable-benefits/other-benefits/gifts-and-rewards/
To declare the reward or gift when the gift or reward is
included in Box 40 of the T4 slip for Quebec residents in Box L of
the RL-1, follow the steps below:
1. On the left side menu of
the " Interview " tab select the item
"T4 and employment income".
2 - On the screen to your right, go to the "Other" group
and click on
the plus sign "+" icon
located on the right of the line "Other employment
income".
3 - On the page entitled "Other employment income" go to
the line "Description and amount of other employment
income", in the box below, enter from whom the gift or the
reward comes from and in the box right enter the amount
of Box 40 of the T4 slip and for Quebec
residents to Box L of the RL-1 slip.
4. If your Quebec amount differs from the federal, click on the
"Maple Leaf" icon to open a field for Quebec and enter
the amount in Box L of your RL-1.
5. However, if there is no amount in Box 40 of your T4 slip,
enter $0.00, click on the "Maple Leaf" icon, and enter the
Quebec amount.
This amount will be reported by the program on line
10400 of the federal return and for Quebec
residents on line 107 with code 05 on line
106 of the Quebec return.
However, it is possible for the CRA or Revenu Québec to claim an
additional CPP or QPP contribution for Quebec residents depending
on the gift or reward received.
ID: 20211029161129CA.xml
Webpage: KPA390-20211029161129CA.htm
