Why doesn't he reimburse me by giving the exact number of 174.00 instead of showing that 16.25 was deducted for tax purposes?
Your employer determined that the reimbursement was a taxable benefit of your employment.
See which different items constitute a taxable benefit on the CRA website here:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/p…
If it was a exact dollar for dollar reimbursement then it should't be added to income. However if he insists that it is then get him to sign form t2200 and claim it as an employment expense. That will take care of the $174 the $16.25 will be a credit to you when you file your tax and will be added to your refund or used to offset a balance owing.
http://www.cra-arc.gc.ca/E/pbg/tf/t2200/…