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8 Cards in this Set
- Front
- Back
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Why payment of premium by EMPLOYER is taxable benefit for EMPLOYEE?
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Is a personal benefit (by law not a benefit as part of a group insurance)
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Most important item to determine taxation of premiums and disability insurance benefits?
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WHO is paying the premium.
If paid by employer and deductible for employer = taxable for employee |
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When are disability benefits taxable for employee?
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If Employer pays premiums.
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Are contributions by employer to disability insurance plan deductible?
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YES - they are a business expense
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3 items to determine whether insurance disability premiums and benefits are taxable:
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1 - payer of premuim
2 - beneficiary of benefits 3 - policyholder |
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Can an employee deduct cost of disability insurance from income?
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NEVER
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Can a non taxable insurance benefit (income per month) be used to accumulate RRSP contribution room?
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NO - not considered "income earned" under the income Tax Act
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Is it better for a shareholder to have a company pay for insurance disability premium than himself?
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Depends on 1 taxation rates applicable to company and 2 - taxation rates of the shareholder's income.
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