Sn 301-00 Taxation In Canada

Front 1

INCOME TAX

Back 1

 Federal
 Provincial (a % of federal, except in Quebec)

Canada
Tax treatment to Employee of:
Ee-paid Er-paid
premiums or contributions  All taxed  All exempt except Life insurance premiums
benefits  All exempt.  All exempt except Disability income and er-paid death benefits.

Front 2

Tax treatment to Employer of:

Back 2

Tax treatment to Employer of:
Er-paid
premiums or contributions  All tax-deductible for the employer
benefits
(i.e. through self insuring)  All tax-deductible for the employer

 Quebec’s taxation rules are different.

Front 3

Taxation to Employees of Flexible Benefit Plans

Back 3

 Ees are only taxed on the credits that they actually elect
 Health Care Spending Accounts (HCSA’s) in Canada
Two possible treatments:
 Roll over the unused year-end balance for 1 year
 Roll over the year-end unclaimed expenses for 1 year

Front 4

Provincial Premium Taxes

Back 4

Similar to State premium taxes in the USA.

Front 5

Provincial Sales Taxes

Back 5

 Some provinces tax Group insurance, but none tax Individual insurance.

Front 6

Goods and Services Tax

Back 6

 replaced Canadian Federal Sales Tax.
 Group Insurance premiums are exempt
 Third Party Administrator fees are subject to it.


Done.