In Canada, all salary, wages, and other remuneration received from your employment must be included in your income for tax purposes. But what do they mean by other remuneration?
The term remuneration means all types of compensation you receive fro your employment in addition to salary and wages. This includes both monetary and non-monetary compensation such as:
- Bonuses,
- Tips,
- Commissions,
- Gifts,
- Directors fees,
- Consideration (i.e. payment) to do or not to something before or after employment, and
- Benefits
This list is intended to provide a general overview of the types of remuneration that is considered taxable employment income in Canada. As a general rule, all income and benefits you receive from employment are income and taxed unless they are specifically excluded.
Timing of Remuneration
Payments you receive from employment will be included in your taxable income in the year in which the payment is received which means the actual date you received your remuneration. For example, if you received your December 2007 paycheque on January 2nd, then the funds are to be included in your 2008 tax return.
Please see our article on taxable benefits for more information.
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