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6 Cards in this Set

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

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

 Quebec’s taxation rules are different.
Taxation to Employees of Flexible Benefit Plans
 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
Provincial Premium Taxes
Similar to State premium taxes in the USA.
Provincial Sales Taxes
 Some provinces tax Group insurance, but none tax Individual insurance.
Goods and Services Tax
 replaced Canadian Federal Sales Tax.
 Group Insurance premiums are exempt
 Third Party Administrator fees are subject to it.