In a previous tip I pointed out that if you paid a board member you had to report this income. I have had a number of questions about this and I want to clarify the reporting.
A board member gets a T4 for the amount of directors’ fees they receive. They do not get a T4 for any reimbursement of mileage or traveling expenses. A reimbursement is not a taxable payment. If your group pays a board member more than $3,500 in a calendar year, then you must deduct Canada Pension Plan (CPP) on the amount over $3,500.
Some groups send a T4(A) if they are not taking deductions, which will probably work, but the most appropriate form is the T4. So to be clear, send a T4 for director’s fees, not for mileage or expense claims.
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