Are Expense Allowances Considered Income?

[#1StepMom]

I know I could eventually find the answer by digging and searching the child support guidelines... but I thought it may be easier to simply ask.

Are company expense allowances considered income?

For example, my husband makes $XX,XXX salary ($X,XXX monthly) at his new job, but the company pays him a monthy allowance of $YYY for his cell phone and car use (gas and parking) as both are requirements of his employment position. (Much like if he were to have a company car and a company cell phone, but a cheaper alternative.)

His "regular pay" AND his allowances are depicted on his pay stubs.

Does this mean that his actual income is his pay plus allowances combined?

Or is his income just his regular pay?

Any clarification would be truly appreciated. Thanks!

[dinkyface]

Do they show up on his T4 as a taxable benefit?

[#1StepMom]

Do they show up on his T4 as a taxable benefit?

I don't know. He only started working for this company this month and just got his first paycheque.

We just don't know what to base child support on.

[dinkyface]

If a trucker makes $100k, but has to spend $10k on hotel/meals on the road - these are NECESSARY for him to do his job - but his employer does NOT compensate him for, then he ends up with $90k before taxes, and this is what CS is based on. This is supported by case law and the step-by-step guidelines.

If a salesman makes $100K (which includes $10k expense compensation), and spends $10k on gas/cell/computer - these are NECESSARY to do his job, then he ends up with $90k before taxes. By analogy, I believe that CS should be based on the $90k (i.e. total pay from employer, minus expenses).

Makes sense to me, but have not looked for cases or official rules/documentation.

Note that if the salesman's expense compensation is a taxable benefit, he is worse off than the trucker....

[#1StepMom]

Thanks Dink!

But how would you know if it's taxable?

For example... my husband's paystub indicates the following:

EARNINGS:
Cell Phone $XX.XX
Parking $XX.XX
Regular $X,XXX.XX
Txb Auto $XXX.XX

GROSS PAY $X,XXX.XX (Total of above 4 combined)

Then there are the typical deductions (i.e. Fed Tax, Govt Pens, EI Cont).

And the Net Pay is the Gross Pay minus Deductions.

In my husband's employment contract, it specifies that he will have a base salary of $XX,XXX plus cell phone, parking, and car allowances.

So, are the allowances considered "total income" in this case?

[dinkyface]

Ask the employer!

The 'Txb' code might be an indicator that the Auto expense is a 'taxable benefit' (implying that the others are not).

[dadtotheend]

I know I could eventually find the answer by digging and searching the child support guidelines... but I thought it may be easier to simply ask.

Evidently.