On June 13, the National Payroll Institute published information regarding the stock options deduction reduction due to the 2024 federal budget.
The reduction to the security options deductions from ½ to 1/3 for security options benefits received on or after June 25, 2024, has been included in a Ways and Means Motion that has not yet been voted on by the House of Commons. As the measure has been included in a Ways and Means Motion, the CRA has released the 2024 T4 slips and the XML coding with the new codes to report security options and security options deductions for the 2024 tax year in preparation to administer the change.
The table below summarizes the T4 reporting requirements for the 2024 tax year.
|
|
January 1 to June 24, 2024 |
June 25 to December 31, 2024, and beyond |
|
Taxable Benefit |
Box 14 and Code 38 |
Box 14 and Code 90 |
|
Stock Deduction (non-CCPC) |
Code 39 (50% of Code 38) |
Code 91 (33.33% of Code 90) |
|
Stock Deduction (CCPC) |
Code 41 (50% of Code 38) |
Code 92 (33.33% of Code 90) |
The National Payroll Institute will inform its members once this measure is voted on.