To add a new benefit, you'll need to create a custom benefit category in the platform.

1. From the navigation menu, go to Benefits Management.
2. On the Custom Benefits tab, click the + Create new button in the top right corner.
3. From the dropdown menu, select Create a Benefit.
4. In the "Create new benefit" pop-up window, fill in the required details:
   • Icon: Choose a visual icon for the benefit.
   • Benefit Category: Click the dropdown and select Taxable Benefit (In Cash) or Taxable Benefit (Non-Cash) from the list.
   • Benefit name.
   • Country: Select Canada.
   • Description: Add a description.
   • Frequency: Choose how often the benefit is applied.
   • Link: You can add a link for more information.
   • Notify employees via email: Toggle this on to send an email notification to employees.
   • Attach File: You can upload a relevant file.
   • How to redeem: Provide instructions on how to use the benefit.
5. Click the Save button.

Once the benefit is created, you can link it to individual employees.

1. Navigate to the employee list and select the employee you want to add the benefit for.
2. Go to the Benefits tab from the employees list menu.
3. Go to the Pay & Compensation tab and click on Employee Benefits & Perks.
4. Click the Add button and select the benefit you created from the list (e.g., "Automobile" or "Health Insurance").
5. Fill in the specific details for the employee:
   • Carry benefit forward: This reflects the setting from the benefit category. You can check or uncheck it at the employee level unless the benefit category is unchecked.
   • Annual cost to you or amount foregone: This reflects the setting from the benefit category but can be changed if required.
   • Amount made good: Add any annual amount the employee contributes toward the benefit. Add the whole year value even if it's being paid by the employee each period.
   • Cash equivalent: This is calculated by the system as the "Cost to you or amount foregone" less the "Amount made good."
   • Calculate benefit from: This field is used to determine the per-period amount. It is only enabled when setting up the benefit before a pay run has been processed. Once the benefit has been processed, this field will be locked. The system will then know which period to use for subsequent calculations.
6. Click Save. The system will now automatically calculate the amount to be included in each pay run. The amount will be displayed in 2 decimal places, but it will be recalculated in each pay run to account for any rounding differences or changes.

Once the benefit is created, you can link it to individual employees.

1. Navigate to the employee list and select the employee you want to add the benefit for.
2. Go to the Benefits tab from the employees list menu.
3. Go to the Pay & Compensation tab and click on Employee Benefits & Perks.
4. Click the Add button and select the benefit you created from the list (e.g., "Automobile" or "Health Insurance").
5. Fill in the specific details for the employee:
   • Carry benefit forward: This reflects the setting from the benefit category. You can check or uncheck it at the employee level unless the benefit category is unchecked.
   • Annual cost to you or amount foregone: This reflects the setting from the benefit category but can be changed if required.
   • Amount made good: Add any annual amount the employee contributes toward the benefit. Add the whole year value even if it's being paid by the employee each period.
   • Cash equivalent: This is calculated by the system as the "Cost to you or amount foregone" less the "Amount made good."
   • Calculate benefit from: This field is used to determine the per-period amount. It is only enabled when setting up the benefit before a pay run has been processed. Once the benefit has been processed, this field will be locked. The system will then know which period to use for subsequent calculations.

6. Click Save. The system will now automatically calculate the amount to be included in each pay run. The amount will be displayed in 2 decimal places, but it will be recalculated in each pay run to account for any rounding differences or changes..

For certain benefits, you can use the pro-rata calculator to adjust the annual cost based on specific dates. From the employee's Benefits tab, click the Pro-rata button next to the "Annual cost to you" field. A modal window will appear where you can enter a start and/or end date to calculate the prorated value.

You can set the "Pro-rata in first pay run" checkbox here. If checked, a further pro-rata calculation will be performed in the first pay period to work out the number of days the benefit was available for in that period.

If an end date is entered, the system will stop including that benefit once the date has passed.

To link a benefit category to multiple employees, once a new benefit category has been created, click on the benefit name from the Benefits Management dashboard. A panel will open showing all linked employees. To add more employees, click the Add button, select the employees from the list, and click Save.

Note: Automobile benefits should only be added from the individual employee record.

You can edit benefits up until they begin to be processed in a pay run. To edit, navigate to Benefits > Benefits Management > Actions > Edit or Delete

If you have moved to this software during the tax year and a benefit has already been partially processed in another payroll system, you can record the processed amounts in the employee opening balances. This will allow the employee to view their consolidated year-to-date benefit amounts in their paystub and T4.. Instructions on how to enter year-to-date benefit amounts can be accessed via the Opening Balances support article.

Best Practice: The best practice is to process an employee's termination within their final pay run. Entering a termination date within a pay run will automatically cease any recurring benefit amounts from being processed, and it should trigger the system to calculate the outstanding amount to be taxed on any benefits provided up to the termination date.

The remaining taxable benefit amount will be added to the employee's final pay, and the total taxable pay will be used to calculate the final Canada Pension Plan (CPP), Employment Insurance (EI), and income tax deductions owing. These values will then be reported to the CRA through the required payroll submissions and on the final T4 slip.

Important Note: If the full value of the taxable benefits cannot be taxed in the final pay period (due to insufficient pay/income), the responsibility remains with you, as the employer, to remit the correct tax deductions to the CRA for all amounts paid or deemed to have been paid to the employee.

A Word of Caution: Terminating an employee using only a basic 'Terminate' button within their employee details (and not fully processing it through the payroll system) will likely have no effect on automatically calculating and taxing their outstanding benefits. 

Any outstanding amounts and the correct deductions will need to be manually calculated and reported to the CRA by you, outside of the standard payroll processing, which increases the risk of error and non-compliance. For detailed information on specific benefits, please refer to the relevant CRA guidance (e.g., Guide T4130, Employers' Guide – Taxable Benefits and Allowances).