D – Debt waiver

If an employee is in debt to you and you release the employee from the obligation to repay the debt, the unpaid amount is a debt waiver fringe benefit. Show the amount of this kind of benefit at item D.

A debt owed by an employee that you write off as a genuine bad debt is not a debt waiver fringe benefit.

Example: Complete debt waiver fringe benefits

An employer waives a $500 debt that an employee owed from a previous year.

The employer shows this at item 23 as follows:

End of example
Last modified: 27 Mar 2015QC 44652