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CRA Tax Guidance for teambrite Rewards

When you issue rewards to employees through teambrite, it's important to understand your tax responsibilities under Canadian law (CRA guidelines).

Are teambrite Tokens Taxable?

Yes. Even though rewards are issued as "teambrite Tokens", they are redeemable for merchandise from major brands(e.g., Bose, Garmin, Ray Ban, etc.) at MSRP — making them near-cash equivalents.

"If a reward or gift can be readily converted into cash or has a clear fair market value, it is considered a taxable employment benefit and must be included on the employee’s T4."

— Canada Revenue Agency

What This Means for Employers

  • Rewards redeemed through teambrite should be reported as taxable benefits.
  • You are responsible for including the value of rewards on each employee’s T4.
  • You may also be required to withhold and remit taxes (income tax, CPP, EI) on the value of these rewards.

Reporting Support

teambrite offers tools to help with compliance:

  • Exportable reward redemption reports per employee
  • Total value (in CAD) of redeemed items
  • Timestamps and item descriptions

We recommend sharing this data with your payroll provider to ensure accurate year-end reporting.

Disclaimer

This information is provided for general guidance only. For specific tax advice or questions about compliance, please consult a qualified tax professional or the CRA directly.