Taxation of Group Benefits, True Benefits Life & Health Insurance Specialists Vancouver BC, group benefits insurance.#Group #benefits #insurance


#

group benefits insurance

Group benefits insurance

Group benefits insurance

Health Dental Insurance Online

Now you can buy individual and family health and dental insurance directly online:

For Manulife FlexCare and FollowMe plans click HERE

For Sun Life HCC conversion health plans click HERE

For Sun Life PHI personal health plans click HERE

Quick Links

Client Login

Taxation of Group Benefits

When setting up your payroll system or doing T4s, you’ll need to know which employee benefits are taxable.

The benefits for which an employer s contributions are taxable are: Life Dependent Life Insurance, AD D Insurance, Critical Illness Insurance and Provincial Medical Services Plan premiums.

For other group benefits such as: Extended Health Care, Vision Care, Dental Care and Health Spending Accounts, employer contributions are tax-free.

In the case of Disability Insurance, employer contributions have potential taxation consequences for the employee if claims are paid.

Death Benefits are not taxable to the recipient

Benefits are not taxable to the recipient

Employer paid premiums are not a taxable benefit to the employee

Employer paid premiums are not a taxable benefit to the employee

Any employer contributions to the premium will result in disability benefits paid to employees to become subject to income tax

Employers may choose to do payroll deductions from employees to ensure disability claim payments are tax free, OR, employers may pay the premiums and employees will pay income tax on the disability benefits received

Some companies choose to add the disability premiums to each employee s T4 as is done with Life Insurance; however, the CRA may not find this an acceptable method of making the benefits tax free

This information is provided for the purposes of designing benefits cost sharing arrangements; for detailed tax information please consult with your business accountant.


Leave a Reply

Your email address will not be published. Required fields are marked *