What are employee non taxable gifts?

Canada Revenue Agency allows employers to give two non-cash gifts per year, on a tax-free basis, to employees for special occasion such as Christmas, birthday, marriage or a similar event. The total value (including taxes) of the gifts should be $500 or less.

Employers can also give employees two non-cash awards per year, on a tax-free basis, in recognition of special achievements such as reaching a set number of years of service, meeting or exceeding safety standards, or reaching similar milestones. The total cost of the awards should not exceed $500.

Near-cash gifs or awards (e.g. a gift certificate) are not qualified for this tax free treatment.

If a single gift or award has a value over $500, it will not eligible for tax free.

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