Sources of Income on T4s

by Trish
(Ontario)

I am using Simply Accounting and have some employees that are reimbursed for mileage and supplies.

On their 'income' tab for each of them, I have allowed/used 'kilometers' and 'supplies' so that these appear on their paycheques for reimbursement.

This works well all year long as I can pay them out their expenses with every paycheque. However, I am finding, that at T4 time, both the kilometers and supplies are being added to their total Income on the T4. This should not be.

How do I eliminate this from happening?

Sorry Trish, I don't use Sage 50 (Simply Accounting), so can't help you. Hopefully one of the other readers can.

Unless reimbursements are attracting taxable benefits, I personally would not run them through payroll but issue separate reimbursement cheques with supporting documentation as backup to support the payment. I know that doesn't help you now but something to consider for the future.





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