Accounting Troubleshooters (Canada) Forum

Full Version: Salary Sacrifice - taxes / employee tool purchase
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Hi,

I'm new to accountedge/ MYOB.

We purchased an employee's tools and he is choosing to reimburse the company on a weekly basis via deductions from his salary.

I want to do this via the salary sacrifice feature. But I'm stuck at the Exempt button.

The tools cost $300( taxes already included), meaning I deduct $50 each week. I am not sure which taxes are normally exempt from this situation.

Even is your not familiar with AE/ MYOB, I'm still not sure the CRA /tax protocol regarding employee reimbursement for work tools.

Is the amount deducted from the employees gross pay ?

If so, how will this affect his payroll taxes.

Any input would be great.

Thanks
I think, taxes should be eliminate from salaries because it is also badly effective on saving.
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