CD 2011-014: Information Notice to Employees

The purpose of this notice is to provide you with information regarding the new taxable overtime meal allowance.

In order to comply with Canada Revenue Agency (CRA) and the Ministère du revenu du Québec (MRQ) policies, any overtime meal allowance exceeding $17, or resulting from frequent overtime, will be taxable.

The new taxable overtime meal allowance is subject to the following deductions:

• federal/provincial income tax
• employment insurance (EI)
• Quebec Parental Insurance Plan (QPIP)
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)

It is the department's responsibility to determine if meals paid as a result of overtime are to be considered taxable or not and use the appropriate code.

For more details, you may view the Canada Revenue Agency (CRA) Employers' Guide - Taxable Benefits and Allowances or the Ministère du revenu du Québec (MRQ) Taxable Benefits Guide at the following Web sites:

Canada Revenue Agency

Ministère du revenu du Québec

Please contact your compensation advisors if you have any questions regarding the information contained in this notice.