A Continuing Education Plan (“CEP”) has been established to accumulate funds for further education. The policy, which details required contributions and use of the funds, can be found on ‘Plan Documents’ page of this website.
The time required to undertake professional development shall be provided with pay up to two weeks annually and can be accumulated to a maximum of six weeks.
If time is not used for professional development it cannot be paid out in lieu of time taken.
In addition to CEP contributions, an amount of $500 per year shall be provided for learning resources such as book purchases, on line subscriptions, webinars or other materials.
Options and Tax tips
Allowance – the flat-rate amount is a taxable benefit and must be included on the T4. Income tax should be withheld; CPP and EI must be paid on this amount. If the employee intends to claim resources purchased with the allowance as work expenses on their personal income tax return, the employer must complete form T2200 and the employee must keep receipts as CRA may request them when assessing the return.
Reimbursement – When the employee submits receipts to the employer and is reimbursed for resource purchases related to their employment responsibilities, no taxable benefit assessed. (Note: Retention or disposal of the resources at termination of employment is not a factor)
CEP contribution – The above noted amount (or some portion thereof) may be submitted to the employees CEP account for book purchases connected with courses or resources for alternate learning opportunities.
Note: Group Pension and Group Benefits are not paid on CEP contributions or education resource allowance/reimbursement.