A bonus is a payment made to an employee, typically for performance, and is considered a form of remuneration. Under Canada's Income Tax Act, bonuses are classified as taxable employment income. As such, they are subject to statutory deductions, including Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax. Even when paid separately from regular pay, the bonus must be included in the employee's gross income for the period, and the appropriate deductions must be calculated and remitted. The method of tax calculation may differ (e.g., bonus method), but its taxable nature remains.

A. Bonuses are explicitly defined as taxable income by the Canada Revenue Agency and are not considered non-taxable gifts in an employment context.

C. A bonus is additional compensation for performance or service, not a reimbursement for an expense incurred by the employee on behalf of the employer.

D. Bonuses are generally considered both pensionable (CPP) and insurable (EI) earnings and are not exempt from these statutory programs.

1. National Payroll Institute. (2023). Payroll Fundamentals 1. Chapter 3: Calculating Remuneration. The chapter details various types of payments, including bonuses, and confirms their status as taxable income.

2. Canada Revenue Agency. (2024). T4001 Employers' Guide – Payroll Deductions and Remittances. Section: "Bonuses, retroactive pay increases or irregular amounts". This section provides specific guidance on how to handle deductions for bonuses, confirming they are taxable remuneration.

3. Canada Revenue Agency. (n.d.). CPP/EI Explained. Chart 2 - Types of payments or benefits - Taxable, CPP, and EI. This chart lists bonuses and retroactive pay increases as subject to CPP, EI, and income tax.