When employees pursue professional development, it's important to determine whether the expense can be reimbursed as a non-taxable benefit through their spending account or must be reported as taxable income. The CRA provides clear guidance on this.
What qualifies as non-taxable?
Reimbursements for courses, programs, or certifications are non-taxable when the training is:
Directly related to the employee’s current job
Intended to maintain, upgrade, or update existing skills
Considered primarily for the employer’s benefit
Examples:
Role-specific training or workshops
Certification renewals required for the job
Professional development to stay current in one’s field
What qualifies as taxable?
If the training is not directly related to the employee’s current job or results in a long-term benefit to the employee (like a diploma or degree), it’s considered taxable.
Examples:
General leadership or communication courses not tied to current duties
Degree or diploma programs
Personal-interest courses