RQConf_PartnerLoginUrl RQConf_CheckUrl

The Charter of the French language and its regulations govern the consultation of English-language content.

Moving and Relocation Expenses

In general, amounts you pay or reimburse to cover the moving expenses of an employee, their family and their household effects do not constitute a taxable benefit for the employee in the following situations:

  • The employee is transferred from one of your establishments to another.
  • The employee accepts employment in a locality other than the one in which they reside.
  • The employee moves from a remote area to another area at the end of the employment contract.
  • The employee returns to the establishment from which they were transferred, after the employment ends.
  • The employee begins a new job in one of your other establishments.
Note

The amounts you pay or reimburse are not a taxable benefit if they cover expenses for which the deduction for moving expenses can be claimed.

End of note

If none of the situations listed above applies, the employee receives a taxable benefit, in which case you have to include the value of the benefit in boxes A, G, I and L of the employee's RL-1 slip (see courtesy translation RL-1-T).

Reasonable expenses

The following moving expenses you pay or reimburse are generally not a taxable benefit if they are reasonable expenses:

  • the cost of reconnecting telephone and cable services, and of hooking up household appliances;
  • the cost of modifications required to install drapes, blinds, carpets, and plumbing or electrical systems, provided the changes are needed to enable the employee to continue using their property in a new residence.

If the expenses are not reasonable, the employee receives a taxable benefit and you have to include the value of the benefit in boxes A, G, I and L of the employee's RL-1 slip.

Note

The employee may be able to claim a deduction for unreimbursed moving expenses in their income tax return.

End of note

Allowance to cover expenses related to relocation

An allowance you pay to an employee to cover expenses related to relocation is not taxable as long as it does not exceed an amount equivalent to the employee's salary or wages for two weeks. To determine the maximum allowance, use employee's salary or wages on the day they begin their new assignment.

If the allowance exceeds an amount equivalent to the employee's salary or wages for two weeks, the excess portion is taxable and must be included in boxes A, G, I and L of the employee's RL-1 slip.

Note

You must withhold and pay Québec parental insurance plan (QPIP) premiums on the portion of a tax-exempt allowance to cover moving and relocation expenses that exceeds $650.

End of note
Note End of note

One mission. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter