Faculty Staff Housing Programs: Taxable Benefits

Some of UBC’s housing programs for faculty & staff are considered income due to the economic benefit provided by UBC through these programs.

UBC has determined that taxable benefits arise on the following housing assistance programs:

  • Restricted Faculty Second Mortgage Loan
  • Faculty-Staff Restricted Rental (including Rent-Geared-to-Income pilot program)
  • Mortgage Interest Assistance
  • Down Payment Assistance

Canadian income tax law provides that any assistance provided or amount paid for or on behalf of an individual, in connection with their office or employment, for the acquisition or use of a residence is a taxable employment benefit.

UBC as an employer is required by law to calculate, report, withhold, and remit tax on cash and non-cash taxable benefits.

  • The employee is solely responsible for paying income tax on taxable employment benefits as well as any applicable Canada Pension Plan contributions or Employment Insurance Act premiums.
  • UBC withholds income tax from an employee’s pay, and then remits the tax to Canada Revenue Agency for each applicable pay period, just as with normal payroll withholding.
  • Most taxable benefits appear on the employee’s paystub for each pay period during the year.
  • At the end of the tax year, the total of all taxable benefits in respect of housing will appear on an employee’s T4 in the Other Information area under Code 30. The total taxable benefit for housing will also be included in total taxable income in Box 14 of the T4.

See more explanation and examples of taxable benefit calculations (PDF) for each type of UBC housing program. Further information on taxable benefits can be found on the UBC Finance website.

 

For questions related to this page, please contact:

James Heth: 604-822-5182 or james.heth@ubc.ca 

Jessica Hou: 604-822-0945 or jessica.hou@ubc.ca