COVID-19: Tax considerations for helping employees
Insights for Canadian tax leaders facing COVID-19
In an effort to control the COVID-19 pandemic, countries around the world are imposing travel restrictions and issuing health guidance. Many employers are also taking measures such as allowing employees to work from home or repatriating them back from foreign locations.
In this latest piece, we discuss the Canadian employment tax issues associated with certain measures that may be taken by employers during this difficult time. The commentary is valid as of March 16, 2020, and is subject to change as we receive additional announcements from federal and provincial authorities.
Topics covered in this article:
- Considerations related to home office expenses
- Financial support offered to employees working from home
- Considerations related to parking/mileage reimbursements
- Reporting of taxable benefits and related tax withholding obligations
- Eligibility for Employment Insurance (EI)
- Considerations related to temporary relocations
- Potential impact for cross-border employees
- Considerations should COVID-19 be classified a disaster in Canada