2016 Tax Tips: For The Employed

From our annual Tax Tips guide, here are the tips and suggestions for the Employed for the year 2016.

Tax Tips: If you are employed

1. Reduce tax withheld at source:

• If you will have large tax deductions available to you (e.g., RRSP contributions, tax shelters, interest, business losses, work related car expenses, or alimony), apply in advance to the CRA for a reduction of the payroll withholdings that are withheld from your salary.

2. Minimize taxable employee benefits:

• Arrange to receive non-taxable benefits from your employer instead of taxable benefits where possible. Examples of non-taxable benefits include: employer contributions to a registered pension plan (the pension is taxable when you receive it); and contributions to a "private health services plan," such as those covering medical expenses, hospital charges and drugs not covered by public health insurance and dental fees.