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belsarius · 01-10-2019, 09:34 AM

Hi all,

At my company we have a few employees with long term interest-free employee loans. I haven't been involved with them other than recording the entries so I assumed they were being completed correctly. We were asked to forgive one of the loans and when we advised HR that it had to be recorded on the T4 it caused a lot of push back that we just need to "write if off".

This made me dig deeper and realize that the taxable benefit from the interest may not have been recorded on previous loans. The explanation I got was that employees are told there is a benefit and they should report it themselves with their return, but I can't seem to find any bulletin or regulation that allows this, only that the employer is responsible for reporting it on the T4.

Can someone help me clarify?

Thanks!!

01-10-2019, 09:34 AM	#1
belsarius First Line Centre Join Date: Feb 2003 Location: Cranbrook Exp:	Tax question - Employee Loans Hi all, At my company we have a few employees with long term interest-free employee loans. I haven't been involved with them other than recording the entries so I assumed they were being completed correctly. We were asked to forgive one of the loans and when we advised HR that it had to be recorded on the T4 it caused a lot of push back that we just need to "write if off". This made me dig deeper and realize that the taxable benefit from the interest may not have been recorded on previous loans. The explanation I got was that employees are told there is a benefit and they should report it themselves with their return, but I can't seem to find any bulletin or regulation that allows this, only that the employer is responsible for reporting it on the T4. Can someone help me clarify? Thanks!! __________________ @PR_NHL The @NHLFlames are the first team to feature four players each with 50+ points within their first 45 games of a season since the Penguins in 1995-96 (Ron Francis, Mario Lemieux, Jaromir Jagr, Tomas Sandstrom). Fuzz - "He didn't speak to the media before the election, either."