“I was having a hard time with my previous provider. It wasn’t personal – the rep didn’t seem to care much about my needs. Group Enroll saw me as an individual running a business and not a number.”
Group Benefits Taxation
All about employee taxable benefits
Taxation of Employee Benefits
The following information below illustrates the income tax breakdown with regards to different employee taxable benefits and other deductibles in Canada.
|Benefit||Cost Tax Deductible to Employer?||Employer Contributions Taxable to Employee?||Employee Contributions Eligible for Tax Deductions or Credit?||Benefit Taxable When Received?|
|Accidental Death & Dismemberment||Yes||Yes||No||No|
|Group Life Insurance||Yes||Yes||No||No|
|Extended Health Care Plan||Yes||No*||Yes||No|
|Employee Assistance Plan||Yes||No||No||No|
|Registered Pension Plan||Yes||No||Yes||Yes|
|Registered Retirement Savings Plan||N/A||N/A||Yes||Yes|
|Deferred Profit-Sharing Plan||Yes||No||N/A||Yes|
|Canada/Quebec Pension Plan||Yes||No||Yes||Yes|
|Retirement Compensation Arrangement||Yes||No||Yes||Yes|
|Provincial Health Plan||Yes||Yes||No||No|
|Benefit||Cost Tax Deductible to Employer?||Employer Contributions Taxable to Employee?|
|Accidental Death & Dismemberment||Yes||Yes|
|Group Life Insurance||Yes||Yes|
|Extended Health Care Plan||Yes||No*|
|Employee Assistance Plan||Yes||No|
|Registered Pension Plan||Yes||No|
|Registered Retirement Savings Plan||N/A||N/A|
|Deferred Profit-Sharing Plan||Yes||No|
|Canada/Quebec Pension Plan||Yes||No|
|Retirement Compensation Arrangement||Yes||No|
|Provincial Health Plan||Yes||Yes|
|Benefit||Employee Contributions Eligible for Tax Deductions or Credit?||Benefit Taxable When Received?|
|Accidental Death & Dismemberment||No||No|
|Group Life Insurance||No||No|
|Extended Health Care Plan||Yes||No|
|Employee Assistance Plan||No||No|
|Registered Pension Plan||Yes||Yes|
|Registered Retirement Savings Plan||Yes||Yes|
|Deferred Profit-Sharing Plan||N/A||Yes|
|Canada/Quebec Pension Plan||Yes||Yes|
|Retirement Compensation Arrangement||Yes||Yes|
|Provincial Health Plan||No||No|
* Yes for Quebec
** Yes, if any part of the short-term or long-term disability premium is paid by the employer. No, if the entire short-term or long-term disability premium is paid by the employee. Where the costs of the short-term or long-term disability plan are shared between employer and employee, the employee is entitled to receive benefits equal to his/her contributions on a non-taxable basis.
Harmonized Sales Tax (HST)
The federal government charges HST on the administration fees for ASO plans.
Provincial Premium Tax (PPT)
- Ontario charges 2% Provincial Premium Tax on the cost of group life and health benefits.1
- Alberta charges 3% Provincial Premium Tax on the cost of group life and health benefits.
- Quebec charges 3.3% Provincial Premium Tax on the cost of group life and health benefits.1
- Newfoundland and Labrador charge 5% Provincial Premium Tax on funded life and health benefits.
- Nova Scotia charges 4% Provincial Premium Tax on funded life and health benefits.
- 1 Provincial Premium Tax (PPT) is also charged on the PPT if it forms part of the premium billed by an insurer.
Provincial Retail Sales Tax (RST)
- Ontario charges 8% Retail Sales Tax on group life and health benefits.2
- Quebec charges 9% Retail Sales Tax on group life and health benefits.
- 2 Retail Sales Tax is also charged on the Provincial Premium Tax if it forms part of the premium billed by an insurer.
Provincial Income Tax
The employer portion of health and dental premiums is included in the tax base for Quebec.
Feedback from our Clients
“The process was incredibly quick. I wasn’t being hounded for every detail about my employees. It really wasn’t time-consuming and I appreciated that.”
Jean-Pierre Lacroix - April 4th, 2017
“Nobody likes researching insurance providers – I heard about Group Enroll from a friend and I couldn’t be happier.”
Evelyne Murphy - May 16th, 2017
“After many complaints from my employees about our current plan, I needed a change and quick. Group Enroll really came through for us when we needed a reasonable solution.”
Raj Patel - July 3rd, 2017
“I never had to look for insurance providers before – I was a little intimidated but Group Enroll made me feel comfortable and I felt like I was dealing with real individuals who understood me and my needs.”