Information Request Form

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Please send me PDF copy of your Benefits Administration Resource Manual
Which services are you interested in Employee Benefits Group RRSPs Pension Plans
Please answer these few questions We are currently insured under a group Life/Health and/or Pension Plan We have no coverage currently We would like a no-obligation review of our benefits plan
Number of emplyees currently insured Less than 10 10 to 25 26 or more
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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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