In the world of being taxed to death, there are some payments and benefits from employers that are not taxed. For  employers and employees this is important to know especially when considering pay increases. Both sides can benefit when using alternatives to rate of pay increases.  Today we will take a look at some of these alternatives.

Over the years many have asked me about board, lodging and transportation payments. There are situations where these are not taxable. The conditions that must be met for the allowance to be tax free are: the work site is too far away from your ordinary residence which is usually considered to be at least 40km; and you had to be away from your ordinary residence for at least 36 hours; OR the work location is remote (at least 80 km from a community of at least 1,000); and you had to be away from your ordinary residence for at least 36 hours. For the first condition, you must also have a regular home that is not rented out to anyone else. If you meet the conditions above but the allowance is not reasonable, you will be taxed on the allowance. Any reasonable allowance or reimbursement for transportation between your regular residence and a special work site is not taxable.

Merchandise discounts for employees are not taxable in most circumstances. The discounts must be available to all employees and the discount cannot allow merchandise to be purchased at less than cost.

An employer can provide meals to employees at a reasonable charge that covers the cost of food, its preparation and service. The difference between what non-employees and employees pay, which is a benefit, is not taxable.

Uniforms and special clothing supplied and/or laundered or dry cleaned by the employer are a benefit that is not taxable. The uniforms or special clothing must be required apparel for employees. In most circumstances, the employer can define the uniforms and special clothing.

Any recreational facilities that are provided for all employees to use are a benefit that is not taxable. Under certain circumstances social or athletic club fees for an employee will not be taxable to the employee if the membership is for the business's advantage. The cost of the membership is a deductible expense for the business under most circumstances.

For individuals receiving strike pay, including those who are picketing, the strike pay is not taxable. Compensation to individuals who are employees or a consultant for the union is taxable.

For employees who are certified as disabled certain expenses paid by an employer are not taxable. This can include transportation costs and parking to and from work and the cost of an attendant to assist the disabled person at work. These expenses are fully deductible for the employer and, in some circumstances there may even be grants available to help defer the employer's costs.

Certain moving expenses paid or reimbursed to an employee are not taxable. These expenses must be a result of a transfer to another branch or location of the present employer or from accepting new employment that is not where the employee's home is. The costs paid or reimbursed must be directly tied to the actual costs and cannot exceed the actual costs. If the reimbursement does not cover all the costs, the employee may be able to claim moving expenses on their personal tax return. If an employer requires an employee to move and the employer either buys or reimburses the employee for any loss on the sale of the home, this benefit may not be taxable and must not exceed the actual loss.

Under certain, specific rules, loans to an employee and/or the difference between the interest charged the employee and what Revenue Canada says should be charged may not be taxable. The conditions that must be met are very detailed and specific, though.

Next week, we will take a look at employment deductions that you may be missing out on claiming.