Hi MATIE892

There are 2 possible answers to your question. Prescribed Zone or Accommodation rent free or for less than the fair market basic information is listed below. There is a link to the CRA site for T4130 Publication on Taxable Benefits and Allowances which has the detail you are looking for. Depending on your location and situation you will find the detailed information you are looking for on page 22 or page 35 of the guide.

You also have an option of calling your accountant to have them provide you with the detail you need or you can call CRA  at 1-800-959-5525 and CRA will guide you too.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4130.html

On page 35 of the Taxable Benefits and Allowances Guide T4130 by CRA

Chapter 4 – Housing and travel assistance benefits paid in a prescribed zone

This chapter applies to you if you meet both of the following conditions: ■ you are an employer or a third-party payer who provides employment benefits for board, lodging, transportation, or travel assistance ■ you provide these benefits to an employee who works or lives in locations that are in prescribed zones for purposes of the northern resident’s deductions

On page 22 of the Taxable Benefits and Allowance Guide T4130  by CRA

Housing or utilities 

Housing or utilities – benefit If you provide an employee, including the superintendent of an apartment block, with a house, apartment, or similar accommodation rent free or for less than the fair market value (FMV) of such accommodation, there is a taxable benefit for the employee. You have to estimate a reasonable amount for the housing benefit. It is usually the FMV for the same type of accommodation, minus any rent the employee paid. In addition, the amount you pay on behalf of, or reimburse to your employee for utilities (such as telephone, hydro, natural gas, water, cable or internet) is also a taxable benefit. This is the amount that you include in the employee’s income as a utilities benefit. If the employee occupies the accommodation for at least one month, the value of the accommodation is usually not subject to the GST/HST

Hope this gets you started as your question covers payroll deductions and payroll taxable benefits. I am assuming you are using Sage 50 to do your payroll also. Once you have determined which type of housing your question falls under it is as basic as setting up one field for a deduction in the payroll module under deductions and setting up another field for the taxable benefit in the payroll module under Incomes.

Jo Anne