Group Life Insurance Benefits

Employee Term Life Insurance is available for each employee. Benefits can range from one to five times annual salary or can be based on a flat amount. Depending on the number of employees generous amounts may be available without medical evidence.


Dependent Life Insurance

Many employees do not have sufficient insurance coverage on their spouses or dependent children. This benefit provides an inexpensive way to make additional protection available.


Accidental Death & Dismemberment

Accidental Death & Dismemberment coverage provides your employees with an ideal opportunity, at a minimal cost, to significantly increase the insurance payable to beneficiaries. Should death occur due to accidental means, an additional death benefit payout is made, usually for the same amount as the Life Insurance. Payments are also made for loss of limb, hearing, or eyesight.


Short Term Disability Benefits

The Short Term Disability benefit provides income replacement for illness or injury occurring on or off the job. Coordination with Workers Compensation benefits is standard along with a wide selection of waiting periods, maximum benefit periods and can be structured so that an employee's benefit payment is tax-free income. Benefits are paid weekly and this coverage is meant for shorter-term illnesses or accidents which prevent an employee from working.


Long Term Disability Benefits

Long Term Disability offers income replacement for disease or injury which would prevent an employee from working for an extended period of time. Benefits will be payable to age 65 as long as the disabled employee meets the Plan's definition of disability. Shorter plans can also be arranged if required. Several options are available, allowing the program to be tailored to your needs.


Group Critical Illness

Critical Illness benefits provide an immediate lump-sum cash payment to an employee diagnosed with a serious illness including heart attack, stroke, cancer, kidney failure, and much more.


Extended Health Care Benefits

All of Canada's provincial health care plans provide us with valuable basic hospital and medical coverage. The provinces are slowly stripping away coverage to keep their costs in line, which means the Extended Health Coverage you can offer your employees is becoming more valuable than ever. This benefit reimburses expenses such as: Prescription Drugs, Ambulance Services, Medical Services & Supplies, Massage therapy, Chiropractors, Physiotherapy, Special Nursing, Out-of-Country emergency travel insurance, Semi-Private Hospital rooms, Oral Contraceptives, Hearing Aids, Vision Care, and more. A wide range of options is available and a plan can be tailored to be affordable for your business.


Dental Care Benefits

A dental plan can be designed based on the demographics of your business to ensure a good fit for your organization. In addition to Basic and Routine Dental services, coverage for crowns, dentures, or Orthodontics can be included depending on the needs of your employees.


Employee Assistance Program (EAP)

An Employee & Family Assistance program can provide your employees with assistance on a wide range of topics including legal and financial issues, parenting resources, or advice for personal and work related problems. Significant value is available to the employees and/or family members through free, professional short-term counselling if needed for more significant issues such as marital difficulties, addiction, or bereavement As well, the program can help gain access to recovery or other programs.


Cost Plus

A "Cost plus" or "Medical Reimbursement Plan" is a tax effective way to enhance the compensation package for your executives and longer-term employees. Cost Plus can be used to cover any medical expense allowable under Revenue Canada's guidelines if they are not covered under your standard employee benefit program. Since Cost Plus expenses are paid with pre-tax funds from your business, and not the disposable income from your employees, it is a very tax-effective way to reward more senior employees, and without attracting payroll taxes.

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Is the premium cost for providing benefits a tax deduction for the Business?

Yes it is. If a Corporation (the "employer") sets up an employee benefits plan and pays the premium on behalf of the employees the premium paid by the business is deductible as a business expense.


If a Corporation provides Group Insurance for employees, is it a taxable benefit to employees?

Only the Life Insurance and Dependent Life premiums paid by the Corporation are considered a taxable benefit to the employee and any premium paid for these benefits by the Corporation in a tax year must be added to the employee's income on the T4. This applies only to the life insurance premium paid by the Corporation. Premiums paid by the Employer for the other Group benefits are tax-free to the employee - and a definite tax advantage.


If an employee is reimbursed for Dental expenses claimed, is the reimbursement a taxable benefit?

No, the reimbursements received by employees for their Health and Dental expenses are not taxable benefits. If there were no Group plan, employees would be paying these expenses with their after-tax dollars, so this feature is a definite advantage to having a group plan.


Are Long Term or Short Term Disability payments received by an employee taxable income?

The answer depends on who is paying the premiums. If the premiums for Short Term and/or Long Term Disability benefits have been paid entirely by the employee, then Revenue Canada states that disability income payments received by the employee will be non-taxable income and need not be declared as income.

If the Employer pays even one cent of the disability premium, then any disability income payment received by the employee is considered a taxable benefit and the Insurance Company will issue a T4A.

If the Employer pays the disability premium, but includes all premiums paid as a taxable benefit on the employee's T4 statement, then by convention CRA has considered that disability benefits received by the employee will be non-taxable income. While this premium treatment is not backed up by legislation, to date Revenue Canada has not challenged it.


Is M.S.P. premium paid by the Employer considered a taxable benefit?

Yes. While employee benefits are not, other than Life Insurance, a taxable benefit to the employees, any Provincial Medical Services Plan (MSP) premiums paid by the employer are a taxable benefit to the employees.

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Is the premium cost for providing benefits a tax deduction for the Business?

Yes it is. If a Corporation (the “employer”) sets up an employee benefits plan and pays the premium on behalf of the employees the premium paid by the business is deductible as a business expense.


If a Corporation provides Group Insurance for employees, is it a taxable benefit to employees?

Only the Life Insurance and Dependent Life premiums paid by the Corporation are considered a taxable benefit to the employee and any premium paid for these benefits by the Corporation in a tax year must be added to the employee’s income on the T4. This applies only to the life insurance premium paid by the Corporation. Premiums paid by the Employer for the other Group benefits are tax-free to the employee - and a definite tax advantage.


If an employee is reimbursed for Dental expenses claimed, is the reimbursement a taxable benefit?

No, the reimbursements received by employees for their Health and Dental expenses are not taxable benefits. If there were no Group plan, employees would be paying these expenses with their after-tax dollars, so this feature is a definite advantage to having a group plan.


Are Long Term or Short Term Disability payments received by an employee taxable income?

The answer depends on who is paying the premiums. If the premiums for Short Term and/or Long Term Disability benefits have been paid entirely by the employee, then Revenue Canada states that disability income payments received by the employee will be non-taxable income and need not be declared as income.

If the Employer pays even one cent of the disability premium, then any disability income payment received by the employee is considered a taxable benefit and the Insurance Company will issue a T4A.

If the Employer pays the disability premium, but includes all premiums paid as a taxable benefit on the employee’s T4 statement, then by convention CRA has considered that disability benefits received by the employee will be non-taxable income. While this premium treatment is not backed up by legislation, to date Revenue Canada has not challenged it.


Is M.S.P. premium paid by the Employer considered a taxable benefit?

Yes. While employee benefits are not, other than Life Insurance, a taxable benefit to the employees, any Provincial Medical Services Plan (MSP) premiums paid by the employer are a taxable benefit to the employees.

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